Why is my Self Managed Superannuation Fund (SMSF) required to pay PAYG income tax instalments?

SMSF’s are required to pay tax on their income just like any other individual or company. The ATO now requires entities to pay their estimated year-end tax liability progressively throughout the four quarters of a year.

So, an SMSF will generally need to pay tax instalments if either:

• The instalment rate the ATO has calculated is greater than 0% and the notional tax is $500 or more
• The instalment income included in the most recent tax assessment is $2m or more