30 Mar 099 Treasurer announces 2009-10 PAYG instalment cutIn a joint media release issued on 28 March 2009, the Treasurer, Wayne Swan, and the Minister for Small Business, Independent Contractors and the Service Economy, Dr Craig Emerson, announced that the Government will cut the quarterly PAYG instalments for the 2009-10 income year for taxpayers whose quarterly tax instalments are adjusted for previous years' Gross Domestic Product (GDP) growth. The Government will use the expected increase in the Consumer Price Index for 2009-10 - rather than previous years' GDP growth - to calculate tax instalments.
For the 2009-10 income year, the Government has reduced the GDP adjustment from 9% to 2%, aligning it with the expected Consumer Price Index (CPI) growth of 2% for 2009-10, as forecast in the Updated Economic and Fiscal Outlook.
This reduction does not apply to taxpayers who calculate their instalments based on the instalment rate notified by the ATO. Their payments will automatically adjust when they apply the given rate to their actual income for the quarter.
For a copy of the joint media release, No 2009/030, 28 March 2009, go here.