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The ATO advises that the PAYG instalment entry and exit thresholds have changed. The ATO recently issued letters advising tax professionals and their clients that they have been exited from the PAYG instalment system. The letters remind them to lodge and pay any activity statements or instalment notices not already lodged or paid by the due date.

Other activity statement obligations including GST and PAYG withholding are not affected by their exit from PAYG instalments. Clients of tax professionals need to continue to lodge and/or pay these obligations. The ATO says it will review the PAYG instalment exit letter in the future to ensure this message is clearer.

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