Review of PAYG Instalment System
The Inspector-General of Taxation (IGT) will conduct a review into the operation of the PAYG instalment system.
The review will focus on the application of the system to individual taxpayers as a number of concerns have been raised in relation to the way the ATO administers the system in respect of individuals.
Some of the concerns relate to taxpayers feeling that they have been entered into the PAYG instalment system unnecessarily because of a one off spike in income in a particular year. Also, there are concerns that communication and guidance from the ATO is not clear and that it can be difficult for individual taxpayers to vary the instalment amounts or lodgement frequency.
While the time period for lodging submissions in connection with this review ended on 30 April 2017, it will be interesting to see whether the IGT makes any practical recommendations for improving the practical application of the system.