The Dynamic PAYGI consultation meeting was held 17 August 2026 1:15 pm AEST.
Key outcomes
Summary
Below is a summary of key outcomes. Note: the full key messages and artefacts are available on the DSP Hub.
Recap and purpose for the session
Session 1 focused on gathering initial feedback from DSPs and exploring the potential benefits, challenges, and implementation considerations. The session identified the need for designing a product that leverages information available in current software and is simple to consume.
Session 2 is an opportunity to further understand what can be done and what it would look like for DSPs to build this service. There are complexities to work through and the ATO is keen to understand the practical considerations involved.
Minimum data needed for a dynamic calculation
The group discussed what data elements could realistically be sourced from business software and what information is typically unavailable outside of tax preparation processes. The conversation focused on balancing simplicity with accuracy, and identifying the minimum viable dataset required to support a Dynamic PAYGI calculation.
Key points
- Most small businesses report quarterly, although software products support a range of reporting cycles.
- Business software usually contains general accounting information rather than tax-adjusted data.
- Instalment rates are expected to be sourced through existing pre-fill arrangements where available.
Member comments
- Entity classifications and tax attributes are often unknown within business software and may only be available in tax or practice management products.
- Preference is for an approach that does not require complete tax accuracy and is within an agreed tolerance.
Data required to improve accuracy
The discussion explored additional information that may improve calculation accuracy but is generally not readily available within business software. Particular focus was given to losses, offsets, credits and record-keeping requirements.
Key points
- Tax losses, offsets and credits are typically determined during year-end tax preparation rather than through normal bookkeeping processes.
- Participants identified significant timing issues between company tax returns and PAYGI periods.
- Information already held by the ATO should be provided as pre-fill or through an API.
Member comments
- Tax Loss information and adjustments usually occur within tax software rather than business management products and are not readily available.
Timeframes for implementation
Feedback was sought on what would be required for DSPs to support a potential 1 July 2027 implementation timeframe. Discussion centred on having clear requirements, understanding the investment needed, and ensuring sufficient time to design, build and deliver any required changes.
Key points
- DSPs need early access to requirements, specifications and implementation guidance.
- Clear documentation and policy assurance were identified as prerequisites for investment planning.
Member comments
- Evidence of customer demand and expected adoption levels is required for internal business cases, with mandatory initiatives taking priority.
- Clarity is needed around implementation expectations, product design and regulatory considerations.
Encouraging uptake and driving demand
Participants discussed how demand for Dynamic PAYGI could be generated across the small business and agent communities, and what role the ATO could play in supporting adoption.
Key points
- Customer demand will be a key driver of implementation decisions.
- Education and awareness activities were seen as critical.
- Messaging should focus on cash-flow management, debt prevention and paying the right amount of tax throughout the year.
Member comments
- Some businesses avoid making a variation as it could result in an incorrect payment amount.
- Increase promotion through practitioner forums, webinars and existing communication channels.
Wrap-up and next steps
Participants agreed that further refinement is needed before requirements can be finalised and consultation should continue as the design evolves.
Key points
- Feedback from the group will be used to further refine calculator requirements.
- Additional consultation sessions are expected to review requirements and delivery options.
- Members were invited to provide further written feedback following the session.
Member comments
- The ATO needs to identify the simplest possible approach that leverages data already held in business management software.
- Success will depend on balancing simplicity, accuracy and adoption outcomes.
Next meeting
TBC
If you have any questions, raise a ticket via the DSP service desk in Online services for DSPs.
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