Background
When your client enters the PAYG Instalment System, the ATO sends them correspondence titled “You now have to pay PAYG instalments”.
Note: The ATO calls this document New PAYG instalment – Introduction.
Your client’s initial Activity Statement will not appear in the ATO Portal Communication History (this is a known ATO issue). However, the initial Activity Statement will be available in the ATO Client Portal. To ensure that you download and process this notice for your clients, we highly recommend using one of the following processes.
Option 1: Using the Missing Activity Statements report
The Missing Activity Statements Report can be used if you are currently using the ATO API to retrieve documents into ATO SmartDocs.
Click iTools > Missing Activity Statements.
Review the two sections on the screen:
Data section – You can export the data to a .csv by clicking Save to csv file.
After exporting, you can further filter the .csv if required and use the data when accessing the Client Portal for each client to prepare their initial PAYG Instalment notice (example shown at the end of the article).
Subsequent quarterly PAYG instalment notices will come through the ATO API unless the client elects to opt out of the PAYG system.
Due to ATO systems (not ATO SmartDocs), only the initial instalment notice will not come through the ATO API.
In the Report section, enter one or more email addresses to send a copy of the data.
Note: The TFN column is removed before the email is sent.(Optional) Turn on the automated email option so all Admin Users receive the report on the first day of July, October, January and April.
Read more about Activity Statements on the ATO website.
Option 2: Using the ATO API in ATO SmartDocs
Tip: The ATO API is available at no extra cost and is a major time-saver. Refer to the article on 'How to set up the ATO API connection' for details.
Select the ATO SmartDocs menu at the top.
Click the Import from ATO tab.
In the Description box, type New PAYG, then select New PAYG instalment – Introduction.
Scroll to the lower section to view all New PAYG instalment – Introduction documents.
Select All entries, or
Select entries for a specific date range (e.g., 01/04/2025 to 30/06/2025 for Q4).
Click Export to CSV.
After exporting, further filter the .csv if required, then access the Client Portal for each client to prepare their initial PAYG Instalment notice (example at the end of the article). Subsequent quarterly instalment notices will come via the ATO API unless the client opts out. Only the initial instalment notice will not come via API due to ATO systems.
Read more about Activity Statements on the ATO website.
Option 3: Not using the ATO API
You can obtain details for clients who received the “You have entered the PAYG instalments system” notice via the Audit area in ATO SmartDocs.
Select Setup > Reports > Audit.
In the Text to Search box, type You have entered the PAYG instalments system, then enter the date range for the previous quarter.
Note: You also need to repeat this search for the following document types:Welcome to the PAYG Instalment System
You now have to pay PAYG Instalments
For example:
To identify clients who entered the PAYG Instalment System between 1 April and 30 June and will receive their initial instalment notice at the end of June, on 1 July you filter between 01/04/YYYY and 30/06/YYYY.Export results and filter the .csv as required. Then reference the file when accessing the Client Portal to prepare the initial PAYG instalment notice. Only the initial instalment notice will not come via the API due to ATO systems.
Tip: If no results appear, check whether the Filename structure for this Document Type has been customised by your practice. Go to Setup > ATO SmartDocs > Configurations, open the Document Profile tab and search for You have entered the PAYG instalments system.
Read more about Activity Statements on the ATO website.
Preparing and processing the initial instalment document
Using the list from one of the above options, follow the ATO link above and click Prepare under the For action area in the Client Portal
After preparing the form, print it to PDF.
You may also need to generate the Payment options PDF and combine it with the Print Instalment PDF. Ensure the Print Instalment Document Profile is set up in ATO SmartDocs. Contact [email protected] if you need assistance.Once prepared, download the Print Instalment document and drag it into ATO SmartDocs to process it like a normal ATO document.
Use the Print-friendly version buttons, and print to PDF.
