So I got a big tax bill. Results of a capital gain from a property sale, it was expected, so no problems.
If I pay the ATO in instalments it will cost 9.63% interest. The interest will be tax deductible next return. The money will also remain in the mortgage offset account reducing our interest costs for the duration of the payments. Marginal rate for tax will be between 32 and 37c depending on investments for next year. Expected interest could be between $300 and $500.
Paying by lump sum will increase our mortgage interest payments.
Better to make an instalment plan or pay in a lump?
you done all the calc already, so just pick which one give you more $ in the pocket.