Hi Hello33,

The PAYG Instalment Liabilities account serves as a record of the PAYG Instalment amounts you have paid over the course of the financial year.

At the close of the financial year, this amount will be factored into your tax return, so the account keeps a record of the amount paid. Your accountant will address the amount in the PAYG Instalment Liabilities account at the end of the financial year.

The main purpose of PAYG Instalment payments are to offset the amount payable when you lodge your tax return. For more information on PAYG Instalments, please refer to this ATO article regarding them.

-Ken