PAYG INSTALMENT
Exercise 1
Calculate the PAYG instalment income
Complete option 2 for PAYG instalments
Calculate the amount of PAYG instalment to be paid
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Sales $22,000
Interest received $800
Residential rental income received $1,100
Commercial rental income $55,000
Dividend income $438
Franking Credit $44
Sale of shares $1,000
Option 2: Calculate PAYG instalment using income tax times rate
PAYG instalment income
T1
$
6.20
T2
OR
New varied rate
T3
T1 x T2 (or x T3)
T11
%
$
Write the T11 amount at 5A in the Summary section
T4
PAYG income tax
instalment
5A
%
$
Exercise 2
Charlie Chap operates a small business and receives investment income. He accounts for
GST and PAYG Instalments on a cash basis, This is a list of revenue (GST inclusive where
applicable) received for the January – March 2013 quarter by Charlie:
Sales
Commercial rent received
Residential Rent received
Interest received
Dividend Income(including Franking Credit 300)
Sale of business printer
Total Revenue
44,000
11,000
8,800
1,200
3.300
2,200
70,500
a. Calculate the PAYG instalment income.
b. Calculate the PAYG income tax instalment assuming a PAYG income tax
instalment rate of 8.73%
Option 2: Calculate PAYG instalment using income tax times rate
PAYG instalment income
T1
$
8.73
T2
OR
New varied rate
T3
T1 x T2 (or x T3)
T11
%
$
Write the T11 amount at 5A in the Summary section
T4
PAYG income tax
instalment
5A
%
$
Reason code Variation
Exercise 3
Millie & Isabel’s dress shop provides the following information for the September
quarter
Dress sales(including GST)
24,000
Interest Received
600
Business Loan –Eastpac Bank
25,000
Gross rental income received on residential property
1,200
Capital Gain on sale of shares
10,000
The instalment Rate provide is %8.5.
As a result of a change in government legislation which will significantly increase sales.
Instalment income is expected to increase by 20% with estimated income tax to $3,500
Required: Complete T1,T2, T3,T11 and T4 Millie & Isabel’s September BAS
Option 2: Calculate PAYG instalment using income tax times rate
PAYG instalment income
T1
$
8.5
T2
OR
New varied rate
T3
T1 x T2 (or x T3)
T11
%
%
$
Write the T11 amount at 5A in the Summary section
T4
PAYG income tax
instalment
5A
$
Exercise 4 IAS
John Braben is preparing his March quarter IAS9typB) and has a choice of options for
calculating his PAYG instalment. John is expecting sales and profit tio increase due to
lower competition and supplies the following information
Quarterly PAYG instalment income
$40,000
Estimated Annual PAYG Instalment income
$160,000
Estimated Annual PAYG Tax
12,800
Current Instalment Rate
5%
Which option should John use in calculating his PAYG instalment?
How much should the instalment be?
Exercise 6
Ingrid and Freddie’s bakery provides you with the following information
Sales(including GST)
GST Collected on sales
Commercial Rent received(excluding GST)
GST on rental Income
Dividend Income(excluding Franking Credit )
Capital Gain sale of Oven
Business Loan
11,220
1020
600
60
200
500
40,000
The instalment rate provided by the ATO is 12%
As a result of increased business opportunities, Infgrid & Freddie estimate their income
tax will be $7680 and instalment income for the current year will increaseto $48,000.
Complete T1,T2, T11 & T14