• PAYG instalment variations - reason codes

    When you vary a PAYG instalment on an activity statement, you must write a reason code at label T4. Choose the reason from the following list that best describes why you decided to vary your instalment amount or rate.

    Code

    Reason

    Description

    21

    Change in investments

    Your investment strategy or policy has changed and this will significantly affect your annual tax liability. For example:

    • the sale or purchase of investments such as shares or residential property
    • the use of investments for private purposes
    • when moving from the accumulation phase to pension phase for your superannuation benefits.
     

    22

    Current business structure not continuing

    Your current business has stopped trading or has changed its structure. For example, your business has:

    • permanently closed or been sold
    • stopped trading because of a merger or takeover
    • gone into bankruptcy or liquidation
    • been placed in the hands of a receiver/manager.
     

    23

    Significant change in trading conditions

    Abnormal transactions relating to your business income or expenses will significantly affect your annual tax liability. For example:

    • you have bought or sold a major piece of machinery
    • your trading conditions have been affected by local or global competition.
     

    24

    Internal business restructure

    You have restructured your business. For example, it has undergone an expansion or contraction, which will significantly affect your annual tax liability.

    25

    Change in legislation or product mix

    A change in legislation, or the product mix of your business, will significantly change your annual tax liability.

    26

    Financial market changes

    Your business is involved in financial market trading and has been affected by domestic or foreign financial market changes. This includes businesses whose income is affected by changes in financial products, such as banks and finance and insurance businesses.

    27

    Use of income tax losses

    You will be using income tax losses, including capital losses transferred from another entity that will significantly affect your annual tax liability.

    33

    Consolidations

    A head company can vary its consolidated instalment based on its estimate of the expected consolidation outcomes for the year. When varying as a result of consolidation, use the special variation code 33 on the consolidated activity statement.

    More information

    For more information, refer to How to vary pay as you go (PAYG) instalments.

    Last modified: 14 Sep 2012QC 16810