Principled Wealth Management, Practical Business Advisory, Precise Accounting and Taxation
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Insights

Insights

An easy explanation of the quarterly PAYG system and how it works

PAYG Instalments is the system through which people who earn business or investment income pre-pay their tax quarterly to the ATO. It is not an additional tax; it is the same tax, collected earlier. Understanding how the amount is calculated — and when to vary it — is the difference between managed cash flow and a year-end surprise.

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Corinne Kirk
For PAYG earners: why $1 is not a full deduction

A common misconception among PAYG earners is that a $100 tax-deductible expense "gets you $100 back." A deduction reduces taxable income, not tax payable. The dollar-for-dollar assumption inflates the perceived benefit and can lead to material errors in personal financial decisions.

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Corinne Kirk
The 11 August decision: what the RBA is weighing

The Reserve Bank meets on 11 August. Three of the four major domestic banks expect a hold at 4.35%; Westpac forecasts a further hike. The data that has arrived since the June meeting is genuinely mixed — enough to sustain a case for either action or restraint.

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Ben Widdup