PAYG Installment for Foreigner Status

Ldondoncha on 29/07/2018 - 16:08

Hi guys,

My tax status changed from "resident" to "non-resident" because I left Australia permanently in December last year.

Recently, while preparing to lodge a tax return for year 17/18, I logged into my myGov account and found that there was a PAYG installment entry for financial year 18/19. After a bit of research, I learnt that it was intended as a prepayment for my estimated investment income. Applying a foreigner tax rate of 32.5%, I estimate that I will need to pay $1950 for investment income for financial year 18/19. I have already made a payment of $2254 to the tax office to cover year 18/19. However, because this was done without first changing the frequency of payment from quarterly to yearly, I think I will be asked to make three more quarterly payment.

Is there any way I can prevent the ATO from asking me to make more payments? I am aware that the frequency of payment can be changed to "annually" (deadline for making this change is 31 July 2018). If I changed the payment frequency now, would I be asked to make another one-off payment despite having already paid $2254 to cover the entire financial year? If I ignored the ATO's request for the three quarterly payments, would any unpaid amount incur interest?

Does anyone have any similar or relevant experience? If you do or know how to address this issue, could you share them with me please?

Thanks!

Financial PAYG Tax

Comments

  • dasher86 on 29/07/2018 - 16:29
    +1

    Try calling them.
    Solved my similar issue.

  • theHMASfriendship on 29/07/2018 - 17:00

    What did the ATO say when you asked them?

  • kasumi on 29/07/2018 - 17:27

    You should be able to vary your instalments to $0 when you receive the subsequent instalment notices, otherwise, give them a call

  • Kenb0 on 29/07/2018 - 17:31

    When you lodge the payg instalment statement(electronically on myGov/ATO), there's an option to vary it and it'll ask you what your estimated annual investment income will be. If you put your the annual estimated investment income figure in there(where I assume you got your 1950 figure from), it should calculate a quarterly payment amount for the year while accounting for the amount you've already paid

    Or, call the ATO.

  • dondoncha on 29/07/2018 - 19:49

    Thanks guys. I have not talked to the ATO yet about it but will definitely give them a call on Monday. Hopefully the call will resolve the issue. If not, I'll probably just follow kasumi's suggestion and adjust the amount next time I receive the notice.

    Kenb0, I cannot adjust the amount now because I have already made the payment for the entire year, there is now an indication reading "Payments are up to date" and I cannot make any adjustment. I hope I can take it to mean that I will not be receiving anymore notices for this financial year but will have to confirm with the ATO on the on the phone.

  • whooah1979 on 29/07/2018 - 22:02

    I left Australia permanently in December last year.

    are you coming back?

    • dondoncha on 30/07/2018 - 00:39

      Not in a foreseeable future. In case you are wondering why, it was the cost of living, the tax, the real estate price, as well as the frustration of having to pay for private health insurance for my wife. Although I really enjoyed the comfortable environment and liked the friendly people, especially Ozbargainers ;-), they were not good enough to justify the above reasons for leaving Australia.

      • whooah1979 on 30/07/2018 - 05:56
        -1

        It’s not uncommon for visitors or citizens to rack up bills or fines and then leave without settling them.

        Why worry about paying taxes if you’re not coming back?

        • dondoncha on 30/07/2018 - 11:10

          I still have some savings and investments there. Who knows what the ATO would do if I owed them money.

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