Financial Services

Pay As You Go Tax Policy

Further information

The PAYG System replaced 11 existing systems, including provisional tax, company and superannuation fund instalments, and Pay As You Earn (PAYE).

Purpose of the policy and summary of issues it addresses

PAYG is a single, integrated system for reporting and paying:

  • tax on business and investment income, and
  • withholding amounts ('withholding' means the process by which you deduct amounts from payments to others and remit these amounts to the Australian Taxation Office (ATO).

Note: universities do not pay PAYG instalments (this is the system which replaces company tax), as we are income tax exempt entities.

PAYG brings instalments of income tax (and other liabilities) and withholding obligations together in one system, which for Universities means one set of rules, one set of payment dates and one form to fill in.

Policy statement

Individual rates of tax

The ATO publishes individual income tax rates. Visit the ATO website for tax rate details.

Payments of PAYG

Reporting and paying of PAYG instalments and PAYG withholding may be done on a Business Activity Statement ("BAS"). This form will also be used to report other tax obligations and entitlements, such as GST, FBT and deferred company and superannuation fund instalments.

The University will have 12 due dates for its activity statements – one for each month.