IAS is for any taxpayer who makes Pay As You Go (PAYG) installments to the tax office. That means individuals, sole traders, business partnerships and companies.
Note: If you are a sole trader or are in business, and your turnover exceeds $75,000 per year, then you need to lodge a Business Activity Statement (BAS) instead of an IAS.
Still not sure if you need to complete an IAS? Contact us and book your free 15 minute consultation to determine if you need to complete an IAS, and how to go about creating and lodging one.
PAYG installments are tax estimations of how much you (or your business) will earn for the year, based on previous year’s earnings. These estimates are then paid at regular intervals throughout the year (e.g. quarterly) so it lessons your tax bill at the end of the financial year.
Completing and submitting an IAS allows you to get clear on what money you own, and what money you owe to the tax office so you aren’t hit with an unexpected tax bill at the end of the financial year.