20% Reduction in PAYG Instalments & 50% Education Rebate

Prior to the approval and release of the Government's proposed stimulus package, a number of other measures have been announced to assist people in the trying financial times ahead. These include 20% Reduction in December PAYG Instalments.

The government has announced an extension for the lodgment and payment of December quarter Instalments to the 3rd of March, 2009 You will generally be able to access this 20% reduction in your PAYG instalment if;

  • You pay your PAYG instalments quarterly using the Commissioner calculated instalment amount printed on your BAS
  • You are carrying on a business and have an annual turnover of less than $2 million, or
  • You are in receipt of income from a partnership or trust that is carrying on a business which has an annual turnover of less than $2 million.

You will not qualify for the reduction if;

  • Your business has an annual turnover of $2 million or more
  • You calculate your PAYG instalments based on your Instalment income (Option 2)
  • You have varied your PAYG Instalments for the 2008-2009 year
  • You pay two instalment amounts annually as notified by the Commissioner on your BAS, or
  • You are not in business (such as an individual with only investment income).

If you are eligible for the reduction in your PAYG Instalment you should only pay 80% of the PAYG Installment Liability printed on your Activity Statement.

Education Tax Refund up to $750 per child You may be eligible for a 50% rebate on Eligible Education Expenses for your primary or secondary school children. If you receive Family Tax Benefit Part A you will be eligible to claim this rebate in relation to the payment for; 

  • Home computers, laptops, printers, USB flash drives, home internet connection, computer repairs, computer software for educational use, school textbooks, stationery, study guides, prescribed trade tools.
  • Money spent on school fees, school uniforms, school based extra curricular activities such as excursions, tutoring costs, musical instruments, sporting equipment, school subject levies, computer games and consoles are not eligible for this rebate. 
  • The rebate is based on a maximum expenditure on the children of $750 per primary school child or $1500 per secondary school child, if you exceed this limit, the expense carry over to later years.