AIM is optional — and only for businesses with an annual turnover of less than $5m — so you might like to talk to an accountant about whether it’s the right choice for you. Other options for paying provisional tax remain in place.
If you decide to choose AIM, set it up in your accounting software before your first provisional tax payment of the 2018/19 financial year. These systems will have AIM functionality:
- MYOB’s AccountRight Live and Essentials Accounting
- Reckon’s APS software
- Xero’s Tax Practice Manager
Your accounting software will then calculate the tax to pay, and the due date. If you pay on time and in full, there are no penalties or interest.
If your income drops during the year, you get an automatic refund of any overpaid provisional tax straight away.