Guide to activity statements
Guide to activity statements
Overview
Businesses use activity statements to report and pay a number of tax obligations, including GST, pay as you go (PAYG) instalments, PAYG withholding and fringe benefits tax. Individuals who need to pay quarterly PAYG instalments also use Activity statements.
Activity statements are personalised to each business or individual to support reporting against identified obligations.
Businesses self-assess their own indirect taxes. For tax periods starting on or after 1 July 2012, we will take the information you submit on your activity statements (about what you owe or expect to be refunded) as your tax assessment under indirect tax laws. Your activity statement will be treated as your notice of assessment, issued on the day you lodge.
Lodging and paying
You can lodge and pay electronically, by mail or in person. You must lodge on time to avoid interest and penalties. If you can't lodge or pay by the due date, contact us as soon as possible. Usually, arrangements can be made to pay your tax debt over an extended period.
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If you're a business, you can lodge your activity statements online or use a paper form. Lodging online is quicker and most quarterly lodgers get an extra two weeks to lodge (terms and conditions apply).
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We'll issue your activity statement before the end of your reporting period, which is usually every three months or every month. If you've lost or haven't received your paper activity statement, you can obtain a copy by phoning us on 13 28 66.
Goods and services tax (GST)
Labels G1, G2, G3, G10, G11, G21, G22, G23, G24, 1A and 1B.
As a business you use an activity statement to report and pay the GST your business has collected and claim GST credits. Most businesses report and pay their GST quarterly and have a choice each year about how they do this.
Pay as you go (PAYG) income tax instalment
Labels T1, T2, T3, T4, T7, T8, T9, T11, 5A and 5B.
You may receive an activity statement or an instalment notice to pay your PAYG income tax instalment. You can generally choose between two reporting options and you can vary your instalments in some circumstances.
Pay as you go (PAYG) tax withheld
Labels W1, W2, W3, W4, W5 and 4.
PAYG tax withheld is the amount you withhold from payments to employees, contractors and company directors. You may also need to withhold from payments to other businesses if they don't quote their Australian business number (ABN) to you.
Fringe benefits tax (FBT) instalment
Labels F1, F2, F3, F4, 6A and 6B.
FBT is separate from income tax. If you paid FBT of $3,000 or more in the previous year, you need to pay the tax quarterly by instalments with your activity statement.
Luxury car tax (LCT)
Labels 1E and 1F.
LCT applies to cars with a GST-inclusive value exceeding the LCT threshold.
Wine equalisation tax (WET)
Labels 1C and 1D.
WET applies at 29% of the value of the wine at the last wholesale sale (before adding GST). It's generally paid by wine producers or wholesalers. If you report and pay GST using a pre-printed instalment amount (option 3 on the activity statement), don't complete the WET section of your activity statement. We have included your WET in this amount.
Fuel tax credits
Labels 7C and 7D.
Fuel tax credits provide businesses with a credit for the fuel tax (excise or customs duty) included in the price of fuel used in business activities, machinery, plant equipment and heavy vehicles.
Instalment notices for GST and PAYG instalments
You may receive a quarterly GST or PAYG instalment notice (or both) instead of an activity statement. This will happen if you've chosen to use the instalment amounts advised by us for these obligations and have no other reporting obligations.
Contents: Guide to activity statements
Overview
Lodging and paying
Completing your activity statement - at a glance
Due dates for lodgment and payment
How to lodge your activity statement
How to pay
What if you can't lodge and pay on time?
Expecting a refund?
Record keeping
Goods and services tax (GST)
Choosing a GST option (quarterly payers)
Completing the GST labels on your activity statement
Methods for reporting GST
Adjustments and corrections
Pay as you go (PAYG) income tax instalment
Completing the labels for option 1
Completing the labels for option 2
Pay as you go (PAYG) tax withheld
Completing the PAYG withholding labels
Fringe benefits tax (FBT) instalment
Completing the FBT labels
Luxury car tax (LCT)
Who needs to pay LCT and who can defer paying it?
Completing the LCT labels
Wine equalisation tax (WET)
Completing the WET labels
Fuel tax credits
Completing the fuel tax credit labels
Adjustments and mistakes
Claiming arrangements for GST instalment payers and GST groups
Instalment notices for GST and PAYG instalments
Completing your activity statement - at a glance
What the activity statement looks like and some basic pointers for completing it.
Due dates for lodgment and payment
The due date for lodging and paying is pre-printed at the top right-hand corner of your activity statement.
How to lodge your activity statement
You can lodge electronically, by mail or in person, but you must lodge on time to avoid interest and penalties. Even if you have no amounts to report for the period, or are having difficulty paying, it's still important to make sure we receive your activity statement by the due date.
How to pay
You can pay electronically, by mail or in person, but you must pay on time to avoid interest and penalties.
What if you can't lodge and pay on time?
If you can't lodge or pay by the due date, contact us as soon as possible. Usually, arrangements can be made to pay your tax debt over an extended period.
Expecting a refund?
If you're due a refund it will usually be paid into your nominated bank account.
Record keeping
Keep a copy of your activity statement, along with the records used to prepare it, for a period of (whichever ends last): five years after the transaction was completed, four years after you lodged your activity statement or, if your assessment has been amended, four years after the date you received the notice of amended assessment.
Completing your activity statement - at a glance
The example below is a paper quarterly activity statement showing the most common reporting requirements. Your activity statement, whether you use paper or the Business Portal - will contain all of your reporting requirements.
Front of activity statement
Back of activity statement
When completing your activity statement make sure you:
- print clearly, using a black pen
- complete the labels where you have something to report (leave other labels blank)
- round down to whole-dollar amounts (don't include cents)
- don't report negative figures or use symbols such as +, -, /, $
- input '0' (do not use Nil) if reporting a zero amount
- transfer the amounts to the summary section at the end of each section
- calculate the amount you have to pay or expect to receive as a refund
- make your payment by the due date
- return your signed paper or electronic form to us, even if you have nothing to report or have already made your payment (unless otherwise directed on the form).
If you make a mistake, you can fix it by either:
- using whiteout
- requesting a new form (phone us on 13 28 66).
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Bookkeepers and activity statements
If you're a bookkeeper who provides activity statement related services, you need to be aware of the legal restrictions regarding who can charge a client for the provision of tax advice.
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For more information, refer to Information for bookkeepers.
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Watch the video: How to complete your BAS
This video shows you how to avoid some common mistakes when completing your business activity statement.
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Due dates for lodgment and payment
The due date for lodging and paying is pre-printed at the top right hand corner of your activity statement.
Quarter
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Due date
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1 - July, August and September
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28 October
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2 - October, November and December
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28 February
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3 - January, February and March
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28 April
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4 - April, May and June
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28 July
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If you report and pay monthly, the due date is usually on the 21st day of the following month. If the due date is on a weekend or public holiday, you can lodge your form and make any payment due on the next business day.
Lodging electronically
If you lodge your quarterly activity statements electronically, via the Business Portal, Standard Business Reporting or a registered tax agent or BAS agent, you may qualify for extra time to lodge and pay.
If you use a registered tax agent or BAS agent, they will be able to inform you if your activity statement lodgment will qualify for the lodgment program concessional due dates. These concessional due dates will only be updated online after your agent has lodged your activity statement electronically.
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For more information about:
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How to lodge your activity statement
You can lodge your activity statement:
- online, using the Business Portal, Standard business reporting (SBR) or Electronic commerce interface (ECI)
- by phone, if you have nothing to report at any label
- by mail
- through a registered tax agent or BAS agent.
Online
You can lodge electronically using one of the following:
Most quarterly lodgers who lodge online have an extra two weeks to lodge.
If you have a registered tax agent or BAS agent who lodges a quarterly activity statement electronically on your behalf, an extra four weeks may be available under the lodgment program.
These concessional due dates will only be updated online after the activity statement has been lodged electronically.
By phone (for 'nil' activity statements only)
Phone 13 72 26 to lodge monthly or quarterly activity statements with nothing to report at any label. You can call this automated service 24 hours a day, seven days a week.
To get started, select the Lodge a nil activity statement option from the self help menu.
You'll need your Australian business number (ABN) or tax file number and the document ID number from the top right corner of the activity statement you want to lodge.
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You can't use this service if you're varying an instalment amount to nil.
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By mail
Mail your original, completed activity statement with your cheque using the pre-addressed envelope provided.
If you misplace the envelope, you can send your activity statement to:
VIC, TAS , WA , SA, NT
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NSW, QLD, ACT
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Australian Taxation Office
Locked Bag 1936
ALBURY NSW 1936
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Australian Taxation Office
Locked Bag 1793
PENRITH NSW 1793
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It's important that you send your original activity statement, not a copy or a version generated from a commercial software package. If you do use a commercial package, make sure you copy the information onto your original statement.
When you post your completed activity statement, allow sufficient time for it to arrive by the due date.
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How to pay
We offer you a range of convenient payment options, both in Australia and overseas:
- BPAY®
- credit card (conditions apply)
- direct credit
- direct debit
- mail
- Australia Post outlets
- from overseas - pay by BPAY®, credit card, direct credit or mail.
® Registered to BPAY Pty Ltd ABN 69 079 137 518
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If you make a payment electronically or at Australia Post, you must still send your completed activity statement to us electronically or by mail, unless we advise you otherwise.
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What if you can't lodge and pay on time?
You need to phone us on 13 28 66 to check if alternative arrangements can be made.
Even if you can't pay on time, you must still lodge your activity statement by the due date.
The general interest charge (GIC) will apply to any amount not paid by the due date. A penalty may also apply if you fail to lodge on time.
Expecting a refund?
Generally, if you have an ABN (Australian business number) we can only pay refunds directly into your properly nominated financial institution account, so it's essential that we have your correct account and branch (BSB) numbers. Your nominated account must be at a branch of the institution in Australia. Generally, this account needs to be held by you, you jointly with another person, or your registered tax agent.
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You can change your financial institution account details online or by phoning us on 13 28 66. You'll need to provide proof of identity. This includes either your:
- TFN (tax file number)
- ABN
- name and specific identifiers, such as information from a previously generated tax notice.
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If you don't have an ABN, we will pay your refund by cheque.
If you haven't lodged a previous activity statement or if you have provided incorrect bank details, we may not issue a refund.
If you're due a refund, we may apply it to offset any taxation debt - regardless of whether it is due and payable - and any other due and payable Australian Government debt you may have, such as a Child Support Agency debt.
Record keeping
You should keep a copy of your activity statement, along with the records you used to prepare it, for a period of (whichever ends last): five years after the transaction was completed, four years after you lodged your activity statement, or if your assessment has been amended, four years after the date you received the notice of amended assessment. These records should be in writing and in English.
Information stored on magnetic tape or computer disk is not in a written form. Such records must be in a form that is readily accessible and easily converted into English.
If you don't have access to a photocopier, you can download a Sample activity statement and copy the information from your original activity statement onto this form and file it for your records.
If you use a calculation worksheet to complete your GST labels, don't forward this document to us with your activity statement. You must keep it with your other records used to prepare the activity statement.
Goods and services tax (GST)
As a business you use an activity statement to:
- report and pay the GST your business has collected
- claim GST credits.
Your reporting and payment period is shown on your activity statement and will be one of the following:
- monthly
- quarterly
- annually.
Choosing a GST option (quarterly payers)
Most businesses report and pay their GST quarterly and have a choice each year about how they do this. If your activity statement shows that you have options available, you need to choose one.
Completing the GST labels on your activity statement
The GST labels you need to know about depend on the option you have chosen:
If your business reports and pays GST monthly, you must complete the same labels as for quarterly payers who choose option 1.
Methods for reporting GST
There are two methods for working out your GST liability. You can use your own accounting records (most businesses do this), or use a calculation sheet provided by us.
Adjustments and corrections
If an event occurs that alters the GST you reported on a previous activity statement - for example, goods are returned and the sale is cancelled - you may need to make an adjustment.
If you need to correct a mistake you made in a previous activity statement, you may need to lodge a revised activity statement.
GST instalment notice
If your business pays a quarterly GST amount and has no other reporting obligations, we will send you a quarterly GST instalment notice instead of an activity statement.
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Terms we use
When we say:
- you: we mean you as a business - for example, a sole trader, a partnership, a trustee of a trust or a superannuation fund, or a company
- business: we mean the GST term enterprise
- GST turnover: we mean the turnover figure you use to work out if you need to be registered for GST. It does not include the turnover of businesses you are connected with
- sales: we mean the GST term supplies
- purchases: we mean the GST term acquisitions
- payment (made or received): we mean the GST term consideration
- GST credit: we mean the GST term input tax credit.
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For more information, refer to GST - completing your activity statement (NAT 7392).
For a list of related documents, tools and forms, including instructions for completing the GST section of your activity statement in specific circumstances, refer to GST essentials.
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Activity statements - home
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Choosing a GST option (quarterly payers)
Most businesses report and pay their GST quarterly and can choose how they do this in the first activity statement of each financial year. Your activity statement will show which options are available to you:
- Calculate GST and report quarterly (Option 1) is available to all quarterly businesses. You report on all the GST labels on your activity statement and pay your actual GST amount.
- Calculate GST quarterly and report annually (Option 2) is available to all businesses with a turnover less than $20 million. You still calculate and pay your actual GST amounts but report only the GST collected and paid (1A and 1B) and total sales (G1) for each quarter. You then report any amounts for exports; other GST-free sales; capital purchases and non-capital purchases (labels G2, G3, G10 and G11) on an annual GST information report, which can be lodged at the same time as your annual income tax return.
- Paying a GST instalment amount (Option 3) is available to businesses with a turnover of $2 million or less. This option allows you to pay a quarterly GST instalment amount worked out by us (or varied by you) and to report your actual GST information annually. To be eligible you need to have reported actual GST amounts for at least four months (for example, two quarterly activity statements) and you can't be in a net refund position.
Once you choose an option, it will be pre-selected for you on subsequent activity statements until you're eligible to choose an option again.
If you're eligible and have elected to report and pay GST annually, you don't need to report or pay any GST during the year. At the end of the financial year you report and pay any amount due using an Annual GST return.
Completing the GST labels on your activity statement
Labels G1, G2, G3, G10, G11, G21, G22, G23, G24, 1A and 1B.
G1 Total sales
Total sales to report at G1 means all of the following:
- your GST-free sales
- your input-taxed sales
- your taxable sales.
Include items such as:
- gross fees for services
- gross sales
- trade-ins and barter transactions
- the sale, lease or rental of land and buildings
- interest earned
- membership fees and subscriptions
- government grants and certain private sector grants
- the sale of business assets such as office equipment
- amounts recovered as a result of a lay-by sale being cancelled
- holding or security deposits forfeited by customers.
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Don't include items such as:
- dividends
- private sales not related to your business
- salary and wages you receive
- hobby activities
- gifts
- trust and partnership distributions you receive
- tax refunds
- government pensions, allowances and payments.
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Most businesses can choose whether to include or exclude the GST component when reporting their taxable sales - select the 'yes' or 'no' at label G1. If you use the calculation worksheet method, you don't have a choice, you must include GST in amounts you report at all labels on your activity statement.
If you have no sales for the reporting period, enter '0' at G1.
G2 Export sales
Export sales to report at G2 are:
- the free on-board value of exported goods that meet the GST-free export rules
- payments for the repairs of goods from overseas that are to be exported
- payments for goods used in the repair of goods from overseas that are to be exported.
All amounts reported at G2 should also have been reported at G1.
Don't report at G2 any of the following:
- amounts for GST-free services, unless they relate to the repair, renovation, modification or treatment of goods from overseas whose destination is outside Australia
- amounts for freight and insurance for transport of the goods outside Australia, or other charges imposed outside Australia in the free on-board value
- amounts for international transport of goods or international transport of passengers.
If these items are GST-free, they should be reported at G3.
G3 Other GST-free sales
GST-free sales include things such as:
- most basic food
- health and education services
- certain childcare services.
Report at G3 all GST-free sales (other than export amounts shown at G2) that you've made. Amounts reported at G3 should also have been reported at G1.
G10 Capital purchases and G11 Non-capital purchases
Capital purchases include things such as:
- land and buildings
- machinery
- cash registers
- computers
- cars.
Non-capital purchases include trading stock and normal running expenses, such as:
- stationery and repairs
- equipment rentals
- leases.
G10 and G11 require you to separately report your capital and non-capital purchases. If you already record these purchases separately in your records, use this existing breakdown to complete labels G10 and G11. If you don't record capital and non-capital purchases separately and your GST turnover is expected to be less than $1 million, then the following applies:
- you only need to record capital items costing more than $1,000 at G10 (capital purchases)
- capital and non-capital items costing $1,000 or less can be recorded at G11 (non-capital purchases).
G21-G24 (option 3: pay GST instalment amount)
If you have chosen option 3, you can pay a quarterly GST instalment amount we work out and report your actual GST information annually. The GST instalment amount is shown at G21. Simply copy this amount to 1A.
If you think that the total of your advised instalment amounts will be more (or less) than your actual GST liability for the year, you can vary your instalment amount. You can vary your instalment amount for any quarter, but you can't vary it below zero. If your varied instalment amount or your estimate of your annual GST liability is too low, penalties may apply. You won't incur any penalty if each quarter you pay the instalment amount we have advised and you don't vary in any quarter. This is the case even if the total of these instalments is less than your actual GST liability for the year.
To vary your instalment amount you need to:
- work out your estimated annual GST liability and enter this at G22
- work out your instalment amount for the quarter - this depends on the number of quarters remaining in the year and the amount of instalments you've already paid; enter this amount at G23
- indicate your reason for varying by entering the appropriate reason code at G24.
1A and 1B - summary of GST on sales and purchases
1A - GST on sales or GST instalment
You report at 1A the total amount of GST (including any relevant adjustments) you're liable to pay us for the reporting period.
If you have no GST on sales or adjustments for the reporting period, write '0'.
If you report and pay GST quarterly using option 3 (the instalments option), report at 1A your GST instalment amount pre-printed at G21. If you've varied this amount, take the figure from G23 and report this amount at 1A.
If you use option 3, you must also lodge an Annual GST return at the end of the financial year and account for any difference between the following:
- your total GST instalments for the year
- your actual GST liability.
In your Annual GST return, report the total amount of GST on your sales plus any relevant adjustments at 1A.
1B - GST on purchases
You report at 1B the total amount of GST credits (including any relevant adjustments) you're eligible to claim from us.
If you have no GST on purchases or adjustments for the reporting period, write '0'.
If you use option 3 (the instalments option), you won't need to complete 1B on your quarterly activity statements. However, you must complete this box on your Annual GST return at the end of the financial year.
Your GST net amount is GST on sales (label 1A) + WET (label 1C) + LCT (label 1E) minus GST on purchases (label 1B) + WET refundable (label 1D) + LCT refundable (label 1F).
If you are a GST instalment payer, the total GST instalments paid by you (label 1H) are taken into account in working out your GST net amount.
Methods for reporting GST
There are two methods you can use to report GST on your activity statement. We accept both methods and you can choose the one that best suits your business. The two methods are the:
- derived from accounts method - you calculate your GST amounts from your business records
- calculation sheet method - you calculate your GST amounts using a step-by-step worksheet.
You may find the accounts method easier and quicker for your business. You can use this method if you have separately recorded the GST amounts for your sales and purchases. For small businesses this may be as simple as having a GST column in your cashbook or spreadsheet.
Regardless of which method you choose, you must keep valid tax invoices of your transactions to support your claims. This is normal business practice.
Adjustments and corrections
Adjustments
From time to time, you may need to make adjustments that increase or decrease the net amount of GST you're liable to pay for a reporting period.
You may have an adjustment if one of the following occurs:
- an event that has the effect of changing the price of a sale or a purchase - for example, you provide a discount to a customer or receive a rebate from a seller
- a taxable sale you made, or a purchase you're entitled to a GST credit for, is cancelled (for example, where goods are returned)
- you write off a bad debt or you recover a previously written-off bad debt
- your actual use of a purchase or importation for business purposes differs from your intended use.
There are also other circumstances where you may be required to make an adjustment, such as when you:
- cease registration
- sell something you used for making financial supplies.
Correcting GST mistakes
When completing an activity statement, you may discover that you have made a mistake in a previous activity statement or left something out.
Generally, you need to lodge an activity statement revision form to correct a mistake. You can do this online or you can phone us on 13 28 66 to obtain a revision form.
In some cases you can correct the mistake or omission in the GST section on a later activity statement. Correcting a mistake on an activity statement is different from making an adjustment. For example, you make an adjustment because the price of a sale or purchase changes, but you make a correction because you have transposed figures incorrectly or accidentally left amounts off your activity statement.
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For more information, refer to:
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Pay as you go (PAYG) income tax instalment
PAYG instalments is a system for paying amounts towards your expected end of year income tax liability. We work out your actual income tax liability when we assess your annual income tax return. To make sure your income tax assessment takes into account the instalments you've paid through the year, you need to finalise your PAYG instalments before you lodge your income tax return.
You can generally choose between two options for calculating and paying your PAYG instalments.
Once you've chosen your option, you must continue to use that method for the remainder of the income year. If you want to change your PAYG instalment option, you need to wait until the first instalment quarter of the following income year. If an option is not applicable to you, your activity statement will indicate this.
Option 1 - instalment amount
You pay an amount calculated by us. We work out this amount using the business and investment income from your most recently assessed income tax return. The benefit of this method is that you'll know the amount of your instalment each quarter, which may help you plan and budget for the payment.
If you think that using the pre-printed amount will result in you paying more (or less) tax than your expected tax for the year, you can vary it.
Option 2 - instalment rate
You work out your PAYG instalment amount based on your actual income multiplied by a rate that we provide to you. The benefit of this method is that the amount you pay reflects your business and investment income for the quarter. You may prefer this method if your income fluctuates.
If you think that using the pre-printed rate will result in you paying significantly more (or less) tax than your expected tax for the year, you can vary it.
PAYG instalment notice
In some cases, we may send you an instalment notice rather than an activity statement. If you don't want to vary the pre-printed instalment amount, you only need to pay the amount shown by the due date and you don't need to lodge the notice.
Completing the labels for option 1
To pay the instalment amount, you use the following labels:
To vary the instalment amount, you use:
T7 - ATO instalment amount
If you have chosen option 1, T7 will show an amount worked out by us. If you want to pay this amount, copy it to 5A (PAYG income tax instalment) on your activity statement.
If you think that using the pre-printed amount will result in you paying more (or less) tax than your expected tax for the year, you can vary it. To vary your instalment amount, you need to fill in T8, T9 and T4.
If you have varied the instalment amount in a previous quarter in the same income year, T7 could also be your most recent varied amount.
T8, T9 and T4 - varying your instalment amount
T8 - Estimated tax for the year
If you want to vary your PAYG instalment amount, you need to first estimate the tax you expect to pay on your business and investment income for the year. Write this figure at T8.
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If you vary your instalment amount and, as a result, pay less than 85% of your actual tax liability for the instalment period, you may incur general interest charge (GIC). If you use the instalment amount we calculated there is no risk that you will incur the GIC.
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T9 - Varied amount payable for the quarter
Use Table 1 below to calculate the amount at T9.
If you are an eligible primary producer or special professional who pays two instalments, use Table 2 below to calculate the amount at T9.
If the result is a positive amount, write it at T9. If it's a negative amount or zero, write '0' at T9.
If it's a negative amount, you may want to claim a credit at 5B - Credit from PAYG income tax instalment variation.
Table 1: Four instalments annually
If the instalment quarter is:
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Your varied instalment amount is:
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The first in the income year for which you need to pay an instalment
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25% of your estimated tax from T8 for the income year.
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Your second for that income year
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- 50% of your estimated tax from T8 for the income year
- less the amount of your first quarter instalment.
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Your third for that income year
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- 75% of your estimated tax from T8 for the income year
- less the amount of your first and second quarter instalments,
- plus any credit you claimed for the second instalment (amounts reported at 5B on a previous activity statement).
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Your fourth for that income year
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- 100% of your estimated tax from T8 for the income year
- less the amount of your first, second and third quarter instalments,
- plus any credit you claimed for the second and third instalments (amounts reported at 5B on a previous activity statement).
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If you're subtracting a previous quarter instalment as part of your calculation:
- use the varied instalment amount if that quarter was varied
- subtract the amount, whether you have paid the instalment or not.
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Table 2: Two instalments annually - eligible primary producers and special professionals
If the instalment is due in:
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Your varied instalment amount is:
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April
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75% of your estimated tax for the income year.
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July
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- 100% of your estimated tax from the income year
- less the amount of your April instalment.
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If we first notify you of an instalment rate during the second, third or fourth quarters of the income year and you choose to vary your instalment amount, exclude the earlier quarters when you work out your varied instalment amount. This will result in a lesser amount.
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For more information, refer to How to vary pay as you go (PAYG) instalments (NAT 4159).
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T4 - Reason code for variation
If you've varied your PAYG instalment amount, you need to tell us why. Choose the reason from the table below that best describes why, and write the corresponding code at T4.
Reason
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Code
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Change in investments
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21
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Current business structure not continuing
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22
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Significant change in trading conditions
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23
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Internal business restructure
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24
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Change in legislation or product mix
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25
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Financial market changes
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26
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Use of income tax losses
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27
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Consolidations
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33
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5A - PAYG instalment
Copy the amount at T7 (or T9 if you're varying) to 5A on your activity statement. This is the total amount of your PAYG instalment for the quarter.
If your instalment amount for the period covered by the activity statement is $50 or less and your only obligation is PAYG instalments, you can write '0' at 5A.
5B - Credit from PAYG instalment variation
If you have decided to vary your instalment amount and the amount of the instalment worked out at T9 is negative, you may be entitled to a credit from earlier instalments for the same income year. You can claim this at 5B.
We offset this credit against your other liabilities on your activity statement. We include it in your net obligations amount at 9 in the Payment or refund? section of your activity statement.
If the instalment you're varying is your first for the income year, you can't claim a credit.
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Even if you're entitled to a credit, you don't need to claim it in your activity statement. If your total instalments for the year are more than the tax on your business and investment income, we will credit you with the overpayment when we assess your annual income tax return.
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Completing the labels for option 2
To calculate and report your instalment amount, use the following labels:
If you want to vary your instalment rate, you also use:
T1 - PAYG instalment income
Work out your instalment income for the quarter and write this at T1. If you don't have any instalment income for the period, write '0'.
Include at T1 all ordinary income you earned from your business or investment activities for the quarter (excluding GST) such as:
- goods or services that you sell or supply
- interest received or credited to your bank account
- gross rent
- dividends paid or reinvested on your behalf - don't include imputation credits
- royalties
- gross amount of income where tax has been withheld because you did not provide your tax file number (TFN) or Australian business number (ABN)
- foreign pensions that are assessable in Australia
- your proportion of any partnership or trust income
- withdrawals from farm management deposits - if you make a farm management deposit, your instalment income for that period is reduced
- fuel tax credits.
Don't include at T1 any of the following:
- GST, WET or LCT you collected
- GST credits
- any income - such as salary, wages or income subject to a PAYG voluntary agreement - where amounts have been withheld or should have been withheld (other than income that an amount has been withheld from because you did not provide your TFN or ABN)
- loans received
- owner's capital
- grants under the energy grants credits scheme, including the fuel sales grant, the product stewardship (oil) benefit and the cleaner fuels grant scheme
- capital gains
- amounts transferred between accounts
- imputation (franking) credits.
Don't reduce your instalment income by any allowable deductions you incur in deriving the income. The allowable deductions you claimed in your most recently assessed income tax return will be reflected in your instalment rate calculated by us. You can vary your instalment rate if you think that using the rate provided will result in you paying more (or less) than your expected tax for the income year.
Partnerships and trusts
If you're a partner in a partnership or a beneficiary of a trust, there are special rules to work out the amount to include in your individual instalment income.
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For more information, refer to:
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Superannuation Funds
Superannuation funds need to include any amounts of statutory income. This includes:
- net capital gains
- gross interest
- gross dividends
- gross taxable employer contributions
- gross taxable employee or depositor contributions
- gross distributions from trusts
- gross distributions from partnerships
- gross foreign income.
T2 - Instalment rate
The rate pre-printed at T2 will be either:
- the instalment rate worked out by us
- your most recent varied rate, if you have varied the instalment rate in a previous quarter in the same income year.
If you want to use the rate pre-printed at T2, multiply the amount shown at T1 by this rate. Write the result at T11.
To vary the instalment rate, fill in T3 and T4.
T3 and T4 - varying your instalment rate
If you think that using the pre-printed rate will result in you paying significantly more (or less) tax than your expected tax for the year, you can vary it. To vary your instalment rate, fill in T3 and T4.
There is no need to vary just because your income has gone up or down since your last quarter. The instalment rate is a percentage, so the amount you pay will go up or down in keeping with your income. For example, if your investment and business income for the quarter is zero, the amount you pay will also be zero, regardless of your instalment rate.
Whether or not you vary your PAYG instalment, when your income tax return is processed your PAYG instalments will be credited against your assessment to work out if you owe more tax or are owed a refund.
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If you vary your instalment rate and, as a result, pay less than 85% of your actual tax liability for the instalment period, you may incur general interest charge (GIC). If you use the instalment rate we calculated there is no risk that you will incur the GIC.
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T3 - New varied rate
If you want to vary your instalment rate, write your new rate at T3.
Your varied rate should be:
estimated income tax for the year
estimated instalment income for the year
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x100
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T4 - Reason code for variation
If you vary your instalment rate, choose a reason from the list below that best describes why and write the appropriate code at T4.
Reason
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Code
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Change in investments
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21
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Current business structure not continuing
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22
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Significant change in trading conditions
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23
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Internal business restructure
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24
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Change in legislation or product mix
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25
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Financial market changes
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26
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Use of income tax losses
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27
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Consolidations
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33
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T11 = T1 x T2 (or T1 x T3)
Multiply the amount at T1 by either:
- the instalment rate pre-printed at T2
- if you vary the rate, your new varied rate that you wrote at T3.
Enter the result at T11.
5A - PAYG instalment
Copy the amount at T11 to 5A on your activity statement. This is the amount of your PAYG instalment for the quarter.
Write '0' at 5A instead of your instalment amount if all the following apply:
- Your instalment amount for the period covered by the activity statement is $50 or less.
- You're not claiming a credit at 5B.
- PAYG instalments is your only obligation.
Example
In the first quarter of the income year, you're offered a choice of options. You decide to use option 2 and place an X at option 2.
Your income for the quarter is:
- total sales of $22,000 (including $2,000 GST)
- interest and dividends received of $100.
Your instalment income is $20,100 - that is, $22,000 less $2,000 GST, plus $100 other income. Write the figure 20,100 at T1.
Our calculated instalment rate pre-printed on your activity statement at T2 is 1.7%.
You calculate the instalment amount to pay as follows:
T1 x T2 = $20,100 x 1.7% = $341.70
Write the figure 341 at T11. Copy the figure 341 to 5A.
5B - Credit from PAYG instalment variation
If you have decided to use a varied instalment rate and your varied instalment rate at T3 is less than the instalment rate pre-printed at T2, you may be entitled to a credit from earlier instalments for the same income year.
A credit will only be available if the earlier instalments were worked out using a higher instalment rate.
We offset this credit against any other tax liabilities on your activity statement. This is included in your net tax payment or refund amount at 9 in the Payment or refund? section of your activity statement.
If the instalment you're varying is your first for the income year, you can't claim a credit.
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Even if you're entitled to a credit, you do not have to claim it in your activity statement. If your total instalments for the year are more than the tax on your business and investment income, we will credit you with the overpayment when we assess your annual income tax return.
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If you are entitled to a credit for a previous instalment and want to claim it on your activity statement, write the credit amount at 5B.
Example
We notify you that your instalment rate will be 10% for the first quarter. You multiply this rate by your instalment income of $1,000, resulting in an instalment payment of $100.
For the second quarter, you choose to vary the instalment rate to 5%. You multiply your current instalment income of $1,000 by the varied rate, resulting in an instalment payment of $50.
You then decide to claim a credit to put you in the position that you would have been in if your instalment rate had always been 5%.
Use the following table to calculate the amount of credit you can claim at 5B.
1
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Add up your earlier instalments (the amounts reported at 5A) even if you haven't paid all of them
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$100
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2
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Add up any credits claimed in previous quarters (amounts reported at 5B on a previous activity statement)
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$0
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3
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Subtract the amount at step 2 from step 1
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$100
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4
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Add up instalment income for all earlier quarters of the income year
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$1,000
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5
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Multiply the amount at step 4 by the varied instalment rate
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$1,000 x 5%
=$50
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6
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Subtract the amount at step 5 from the amount at step 3
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$100 - $50
=$50
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7
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If the result is a positive amount, this is the amount of credit that may be claimed at 5B
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$50
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Pay as you go (PAYG) tax withheld
Under PAYG withholding, payers (generally businesses and other enterprises) must withhold amounts from certain payments made to others. These payments include:
- payments to employees, company directors and office holders
- payments to workers under a labour hire agreements
- payments under voluntary agreements
- payments where an Australian business number (ABN) has not been quoted in relation to a supply.
You report these withheld amounts on your activity statement and all withheld amounts are sent to us.
Completing the PAYG withholding labels
To complete this section of your activity statement, refer to the following labels:
Completing the PAYG withholding labels
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Ensure the amounts withheld are reported at the correct label.
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W1 - Total salary, wages and other payments
Include at W1 the total gross payments from which you are required to withhold amounts. These payments could include any of the following:
- salary, wages, allowances and leave loading paid to employees
- director fees
- salary and allowances paid to office holders, including members of parliament, statutory office holders, defence force members and police officers
- payments made by a labour hire firm to workers under a labour hire arrangement
- employment termination payments
- payments for unused annual or long service leave
- payments to religious practitioners
- superannuation (super) income
- super lump sum
- Commonwealth education and training payments.
Include all payments subject to withholding, even if you were not required to withhold any amount. For example, if you pay an employee $80 a week and they claim the tax-free threshold, there is generally no obligation to withhold as long as they have previously provided their TFN; but you still need to report the total payment at W1.
Don't include any of the following:
- amounts subject to salary sacrifice arrangements
- super contributions
- departing Australia superannuation payments (DASP)
- payments from which you withheld an amount from because an ABN was not quoted (for more information, see W4)
- an investment distribution that you withheld an amount from because a TFN hasn't been quoted
- interest, dividends or royalty payments that you withheld an amount from for a payment to a non-resident
- payments to foreign residents for entertainment, sports, construction and casino gaming junket activities.
If you didn't make any payments, leave the labels blank.
Large withholders
Entities may have a large, medium or small withholding status. You're a large withholder if you either:
- withheld amounts totalling more than $1 million in a previous income year; or
- are part of a company group that has withheld more than $1 million in a past income year.
If you're a large withholder, you need to only complete W1 on your activity statement. Do not complete W2, W3, W4, W5 or 4 in the Summary section.
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Don't include amounts for super on your activity statement.
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W2 - Amounts withheld from salaries or wages and other payments shown at W1
Include at W2 the total amount you withheld from salaries, wages and other payments shown at W1. If you did not withhold any amounts, leave W2 blank.
This is the main type of withholding. If you have no other withholding obligations, go to W5.
W4 - Amounts withheld where no ABN is quoted
When you make payments to suppliers who don't quote their ABN, generally you need to withhold 46.5% of the invoice amount and pay this to us. Not quoting their ABN means there was no ABN on the invoice and the supplier did not provide it in any other way.
Include at W4 the total amount you withheld from payments to suppliers who did not quote their ABN to you. If you have nothing to report, leave W4 blank.
W3 - Other amounts withheld (excluding any amount shown at W2 or W4)
W3 covers other types of withholding. Include the total amounts, if any, you withheld from any of the following payments:
- interest, dividends, unit trust or other investment distributions you made, where the person you're paying has not completed a Tax file number declaration (NAT 3092) form or otherwise provided you with a TFN (includes a non-resident)
- interest, dividends or royalty payments you made to a non-resident
- any DASP you made
- any payments you made to foreign residents, for any of the following
- entertainment and sport activities
- construction and related activities
- arranging casino gaming junket activities.
If you have nothing to report, leave W3 blank.
W5 - Total amounts withheld (W2 + W4 + W3)
Include at W5 the total of W2 + W4 + W3.
Don't include W1 in your W5 total.
Copy the total at W5 to 4 in the Summary section of your activity statement.
If your activity statement only asks you to report PAYG withholding, you will not have a summary section. Your total withholding will be reported at 9 in the Payment or refund section of your activity statement.
4 - PAYG tax withheld (summary section)
Copy the total from W5 to 4 in the Summary section of your activity statement.
Fringe benefits tax (FBT) instalment
FBT is a tax employers pay on certain benefits they provide to their employees, including their employees' family or other associates. The benefits may be in addition to, or part of, their salary or wages package. FBT is separate from income tax.
If you were required to pay FBT of $3,000 or more in the previous year, you need to pay the tax quarterly by instalments with your activity statement.
Completing the FBT labels
To complete the FBT section of your activity statement, use the following labels:
If you want to vary your FBT instalment amount, also use:
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The FBT year is from 1 April to 31 March. If you pay FBT by instalments, you should lodge all of your activity statements for the FBT year ending 31 March, including the March quarter, before lodging your annual FBT return. We can then update your FBT account and process the return without delay.
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For more information on FBT, refer to:
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If you have an FBT, LCT or WET obligation, all three labels will appear on your activity statement. Ignore the labels that don't relate to your activities.
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Activity statements - home
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Completing the FBT labels
F1 - ATO instalment amount
If you're required to pay FBT quarterly by instalments, we will work out an instalment amount for you and pre-print it at F1.
We calculate the amount at F1 based on the FBT payable on your most recent FBT assessment. If you think that using the pre-printed amount at F1 will result in you paying more (or less) than your expected FBT liability for the year, you can vary it.
If you are not varying your instalment amount, copy the amount at F1 to 6A in the Summary section of your activity statement.
F2, F3, F4 - Varying your instalment amount
If you want to vary the pre-printed amount at F1, you'll need to complete F2, F3 and F4.
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If you vary your instalment amount and your total instalments for the year - or the estimates that you base them on - are less than 90% of your actual FBT liability for the year, you may incur a penalty.
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F2 - Estimated FBT for the year
Include at F2 your estimate of your total FBT liability for the FBT year ending 31 March.
F3 - Varied amount for the quarter
Work out the amount of your varied FBT instalment for the quarter using the following formula:
(F2 amount x relevant percentage)
(previous instalment liabilities less any previous credits claimed)
The relevant percentage depends on the FBT quarter in which you are varying the instalment amount (the FBT year is from 1 April to 31 March):
Quarter ending
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Relevant percentage
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30 June
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25%
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30 September
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50%
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31 December
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75%
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31 March
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100%
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If the result is a positive amount, write it at F3. If it's a negative amount or zero, write '0' at F3.
If it's a negative amount, you may want to claim a credit at 6B in the 'summary' section. Don't show a minus sign at 6B.
F4 - Reason code for variation
If you've varied your FBT instalment amount, you need to tell us why. Choose the reason from the table below, and write the corresponding code at F4.
Reason
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Code
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Current business structure not continuing
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22
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Change in fringe benefits for employees
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30
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Change in employees with fringe benefits
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31
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Fringe benefits rebate now claimed
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32
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6A - FBT instalment
If you're using the FBT instalment amount pre-printed at F1, copy this amount to 6A. If you've varied your FBT instalment amount for the quarter, copy the FBT instalment amount you wrote at F3 to 6A.
6B - Credit from FBT instalment variation
If you vary your estimated FBT for the year to an amount lower than the FBT you had to pay last year, you may get an FBT instalment credit. You should take this credit into account when working out any amount payable. The credit is only available where the calculation of the F3 amount gives a negative amount.
Example: varying your FBT instalment
In the quarter ending 31 December, the amount of $10,000 is pre-printed on your activity statement at F1. This results in a notional FBT amount of $40,000 for the year - that is, $10,000 x four quarters.
Step 1
You estimate that your FBT liability for this year will reduce to $28,000, as several employees have left and will not be replaced.
Step 2
Write your estimated annual FBT amount of 28,000 at F2.
Step 3
As this is the quarter ending 31 December the relevant percentage is 75%. Use the formula:
(F2 amount x 75%) - (previous instalments liabilities - any previous credits claimed)
($28,000 x 75%) - ($20,000 - 0)
= $21,000 - $20,000
= $1,000.
Write the figure of 1,000 at F3 on the activity statement, and then copy it to 6A in the summary section of your activity statement.
The previous FBT instalments for quarters one and two total $20,000. You haven't varied your FBT earlier in this FBT year.
Step 4
To advise us of your reason for varying, choose the reason code which is closest to your circumstances. Write this code at F4.
In this example, the best choice is 'change in employees with fringe benefits'. Code 31.
Luxury car tax (LCT)
LCT applies to cars with a GST-inclusive value exceeding the LCT threshold. LCT is payable in addition to GST, but it is not payable on the full value of the vehicle - it is payable on 33% of the GST-exclusive value that exceeds the LCT threshold.
LCT also applies to fuel-efficient vehicles that are above the fuel-efficient car limit.
Who needs to pay LCT and who can defer paying it?
You need to pay LCT on all luxury cars that you purchase or import, unless you intend to use it for certain 'quotable' purposes and quote your ABN in the approved format to the supplier (or Customs, in the case of importations).
Completing the LCT labels
You account for LCT when you complete your activity statement for GST, using the same tax period. You complete the LCT section of your activity statement using the following labels:
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For more information about LCT, including the threshold for fuel-efficient and other cars, and how to work out when LCT applies, refer to Luxury car tax - home.
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If you report and pay GST using a pre-printed GST instalment amount (option 3 on the activity statement), don't complete the LCT section of your activity statement. We have included your LCT in this amount. You must still report LCT payable (1E) and LCT refundable (1F) when lodging your Annual GST return. This is due at the same time as your income tax return.
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If you report and pay GST annually (option 4), you don't have to report LCT on monthly or quarterly activity statements. You'll need to report LCT on your Annual GST return.
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Who needs to pay LCT and who can defer paying it?
You need to pay LCT on all luxury cars that you purchase or import unless you quote your ABN in the approved format to the supplier - or to Customs, in the case of importations. You can quote your ABN if you intend to use the car for one of the following quotable purposes only, and for no other purpose:
- holding it as trading stock, other than holding it for hire or lease
- conducting research and development for its manufacturer
- exporting it in circumstances where the export is GST-free.
The LCT becomes due and payable when you on-sell the luxury car or stop using it for a quotable purpose. This may happen if you hold a car as trading stock and start using it for private purposes, or if it becomes a capital asset of your business.
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If you have an LCT, wine equalisation tax (WET), or fringe benefits tax (FBT) obligation, all three labels will appear on your activity statement. Ignore the labels that don't relate to your activities.
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Completing the LCT labels
1E - Luxury car tax
Include at 1E all the LCT that you have to pay for the current reporting period.
Generally, you calculate this amount for each luxury car as follows:
- Take the LCT value (price including GST, before LCT is added).
- Deduct the LCT threshold.
- Multiply this amount by 10/11 to exclude GST.
- Multiply the result by 33% to work out the LCT payable.
- Add the LCT value and the LCT payable to work out the total amount that you charge a customer for the luxury car.
In some cases (for example, second hand cars) LCT may have been previously payable on the car. The LCT payable on the sale that you make may be reduced by the amount previously payable.
Increase in LCT amount
Also include at 1E any increases to the amount of LCT that was payable on a previous activity statement. These are known as increasing adjustments. This might arise if any of the following occur:
- there has been an increase in the price of the car
- you quoted your ABN when you purchased or imported the car and used it for a non-quotable purpose
- you recovered a bad debt in relation to a luxury car
- you previously had a decreasing adjustment and now use the luxury car for a non-quotable purpose.
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If you have nothing to report at 1E, leave the label blank.
You will also need to an adjustment for GST.
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1F - Luxury car tax refundable
Include at 1F any adjustment to LCT that was paid by you in an earlier tax period if a change of circumstances means LCT is now refundable. This can happen if any of the following occur:
- there is a decrease in the price of the car
- you have written-off a bad debt in relation to a luxury car or a debt has been overdue for 12 months or more
- you did not quote your ABN at the time of the purchase or import and the following applies -
- you intend to use the vehicle for a quotable purpose
- you have used the vehicle for a quotable purpose only
- the sale is cancelled.
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If you have nothing to report at 1F, leave the label blank.
You will also need to make an adjustment for the amount of GST.
You can make adjustments online to correct mistakes in a previous activity statement. Alternatively, phone 13 28 66 and ask us to send you a revised activity statement to complete.
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For more information, refer to:
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Activity statements - home
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Wine equalisation tax (WET)
WET is a value-based tax on wine consumed in Australia. WET applies at 29% of the value of the wine at the last wholesale sale (before adding GST).
If you report and pay GST using a pre-printed instalment amount (option 3 on the activity statement), don't complete the WET section of your activity statement. We have included your WET in this amount. You'll still need to report WET payable (1C) and WET refundable (1D) when lodging your Annual GST return. This is due at the same time as your income tax return.
If you report and pay GST annually you are not required to report WET on monthly or quarterly activity statements, however you must report WET on your Annual GST return.
Completing the WET labels
You complete the WET section of your activity statement using the following labels:
Completing the WET labels
1C - WET payable
Include at 1C all the WET that you're liable to pay in the current reporting period.
Use the Calculating WET worksheet to work out the type of assessable dealing for which WET is payable. Once you have calculated the amount payable write it at 1C on your activity statement.
Write the total amount payable at 1C on your activity statement.
If you have no WET to report, write '0' at 1C.
1D - WET refundable
Include at 1D the amount of WET refundable.
Use the WET credit worksheet to calculate your total refund. Once you have calculated the amount, write it at 1D on your activity statement.
If you have nothing to report, write '0' at 1D.
Fuel tax credits
Fuel tax credits provide businesses with a credit for the fuel tax (excise or customs duty) included in the price of fuel they use in machinery, plant equipment and heavy vehicles for business purposes.
Before you can make a claim, you must be registered for GST and fuel tax credits.
Completing the fuel tax credit labels
You claim your fuel tax credit by completing the following labels:
Your net fuel amount is label 7C (fuel tax credit overclaim) - label 7D (fuel tax credit).
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You can use the:
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Adjustments and mistakes
Sometimes you may need to decrease or increase your entitlement to fuel tax credits - for example, because you used fuel for a different purpose than you intended, or made a mistake in a previous claim. These adjustments and corrections can usually be done on subsequent activity statements, subject to certain value and time limits.
Claiming arrangements for GST instalment payers and GST groups
For GST groups, branches and joint ventures, the representative entity or operator claims fuel tax credits on behalf of the others.
GST instalment payers who register for fuel tax credits receive a quarterly activity statement to make their claim.
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You cannot claim fuel tax credits for:
- aviation fuels
- fuels you use in light vehicles of 4.5 tonne gross vehicle mass (GVM) or less, travelling on a public road
- fuel you acquired but did not use because it was lost, stolen or otherwise disposed of
- some alternative fuels such as ethanol and biodiesel that have already received another grant or subsidy.
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For more information, refer to:
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Activity statements - home
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Completing the fuel tax credit labels
7D Fuel tax credit
At label 7D you need to include all the fuel tax credits you're entitled to for the tax period. The amount of fuel tax credits you can claim depends on your business activities.
You also need to include in the amount at label 7D any adjustments or mistakes that increase your entitlement to fuel tax credits.
You can claim fuel tax credits at the time you acquire, manufacture or import taxable fuel into Australia.
If you account for GST on a
- cash basis, claim your fuel tax credits in the same activity statement period you pay for your fuel
- non-cash basis, claim your fuel tax credits in the activity statement period you receive your invoice for your fuel.
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If you have nothing to report at label 7D, write '0' (don't leave this label blank).
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How to work out your fuel tax credits
The easiest way to work out your fuel tax credits is to use our online calculator. The calculator will also help you work out any adjustments you need to make and provide a summary you can use when completing your activity statement.
Different fuel tax credit rates apply to the fuel you purchase, depending on what it is used for. To use the online calculator you need to know how many litres of eligible fuel you have purchased for each business use that has a different rate.
Records you can use to work out your claims include:
- tax invoices for fuel
- records showing how you used the fuel and any loss, sale or disposal of the fuel
- records showing how you have worked out your fuel tax credits - the worksheet we send you with your activity statement is a useful record to keep.
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For more information about record keeping and how to calculate your claim, refer to:
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Adjustments that increase your entitlement
At label 7D include adjustments to fuel tax credits that increase your entitlement. You do this when you become aware of the change in use.
An increase in entitlement may arise when you have claimed fuel tax credits but you didn't use the taxable fuel as you intended and the actual use attracts a higher credit rate.
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When calculating the dollar amount of your adjustment, apply the fuel tax credit rate that applied at the time you made your original claim.
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For more information, refer to:
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7C Fuel tax credit overclaim - decreasing your entitlement
At label 7C you need to make any adjustments to fuel tax credits that will decrease your entitlement. This may happen when you become aware of a change in circumstances. For example, you:
- have claimed fuel tax credits for fuel that has subsequently been sold, lost or disposed of
- don't use the fuel as you originally intended and the actual use attracts a lower rate.
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If you have nothing to report at label 7C, write '0' (don't leave this label blank).
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For more information, refer to:
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Activity statements - home
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Adjustments and mistakes
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These arrangements only apply to adjustments and mistakes relating to fuel tax credits.
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Sometimes you may need to change an amount of fuel tax credits you have claimed by making an adjustment or correcting a mistake.
Amounts that decrease your entitlements should be reported at label 7C. Amounts that increase your entitlements should be reported at label 7D.
You need to make an adjustment if you use the fuel for a different purpose than you intended at the time you acquired, imported or manufactured it, and it changes your entitlement. In this case, your entitlement was correct at the time you acquired the fuel, but your actual use of the fuel later changed.
A mistake generally means you have claimed fuel tax credits on an activity statement when there was no real entitlement, or there was a different entitlement at that time. Mistakes may be the result of a simple preparation error. For example, one of the following may occur:
- you have transcribed the wrong final figure into the fuel tax credit label at 7D
- you have calculated your entitlement using the wrong fuel tax credit rate
- you claimed all of the fuel you acquired, instead of just the portion of fuel that is eligible.
Mistakes can be corrected on a later business activity statement, subject to time and value limits.
It is not a mistake if you forget to claim fuel tax credits you are entitled to; you can claim them on a later activity statement. You must do this within four years of the end of the activity statement period that relates to the date of the tax invoice for the fuel.
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When calculating the dollar amount of your adjustment you need to apply the fuel tax credit rate that applied at the time you made your original claim.
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For more information, refer to:
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Activity statements - home
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Claiming arrangements for GST instalment payers and GST groups
GST groups, branches and joint ventures
Claiming arrangements vary for GST groups, branches and joint ventures:
- The representative member of the GST group claims fuel tax credits on behalf of the group.
- Each GST branch claims fuel tax credits separately from the parent entity.
- The operator of a GST joint venture claims fuel tax credits on behalf of the participants of the joint venture.
GST instalment payers
If you pay GST instalments, you can claim fuel tax credits on a quarterly basis. You need to register for fuel tax credits. When you have done this, instead of receiving an instalment notice you'll receive quarterly business activity statements (BAS) regardless of whether you pay two or four GST instalments for the financial year.
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If you want to claim fuel tax credits for the period, or if you have an adjustment to make for a fuel tax credit overclaim, you only need to lodge an activity statement.
Your fuel tax credits are not included in your pre-printed GST instalment amount. You need to report your actual fuel tax credits separately at label 7D on your activity statement.
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For more information, refer to Fuel tax credits and GST instalments (NAT 15330).
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Activity statements - home
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Instalment notices for GST and PAYG instalments
You'll receive a quarterly GST or PAYG instalment notice (or both) instead of an activity statement if all of the following occur:
- you report and pay your GST or PAYG instalments (or both) quarterly
- you use the instalment amounts advised by us
- you have no other reporting requirements.
Your instalment notice has a GST instalment amount pre-printed at G21 or a PAYG instalment amount (or both) pre-printed at T7.
What you need to do
To pay the total advised instalment amount, you need to:
- transfer the total instalment amount (G21 + T7) to the Amount paid section of the payment advice
- pay the amount by the date shown in the Payment due on section at the front of the instalment notice. Payment can be made using one of the How to pay options
- keep the instalment notice for your records. Don't return it to us.
If you pay the total instalment amount there is nothing else you need to do for this quarter. If you're unable to pay the advised amount by the due date, phone us on 13 28 66 to discuss your situation.
Varying your instalment amount
If you think that using the amounts pre-printed at G21 and T7 will result in you paying more (or less) than your expected tax liability for the year, you can vary it.
However, you don't have to vary; you can simply pay your advised instalment amounts and then:
- make a balancing payment (or receive a refund) of GST when you lodge your annual GST return
- pay income tax (or receive a refund) when you lodge your income tax return.
If you pay the instalment amounts advised by us by the due date, you will not incur penalties.
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If you lower (vary down) your GST or PAYG instalment amounts and, in working out the varied instalments, underestimate your annual GST or income tax liability, you may incur penalties.
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To vary your GST or PAYG instalment amount (or both), you need to complete the section on the back of the instalment notice.
Last Modified: Tuesday, 29 January 2013
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