22/10/2026
Varied your PAYG instalments to $0? The ATO is writing to you.
For years, plenty of business owners have done the same thing.
Cash is tight. The instalment notice arrives. Vary it to nil and deal with it at tax time.
It feels like smart cash flow management.
But the ATO has started writing to business owners who have varied to nil year after year.
If your varied instalments come in under 85% of the tax you actually owe, interest can apply to the shortfall.
And that interest is no longer tax-deductible. It comes straight out of your pocket.
Right instinct. Wrong tool.
“But Guru, I vary because I genuinely can’t afford the instalment.”
That’s a cash flow problem. Varying to zero just hides it until the bill is bigger.
A variation should be based on real, current numbers, not hope.
One owner varies to nil and waits for the letter.
The other reviews the numbers each quarter and pays what’s actually right.
Both manage their cash flow. Only one avoids the interest bill.
📅 Book a PAYG instalment review: link in bio, or call 1300 085 032
General information only. Whether a variation is reasonable depends on your circumstances, so speak to us before varying.