GST instalments

Working out if you can pay by instalments

You can pay GST by instalments if you are either:

a small business with an annual turnover (including the turnover of your related entities) of less than $2 million
not operating a business, but are carrying on an enterprise with a GST turnover of $2 million or less.

You must:

have lodged an activity statement for at least

two quarters, or
four months if you previously lodged your activity statement monthly

have lodged all your previous activity statements as required.

You must not:

lodge your activity statement monthly
be in an overall GST net refund position in the previous year (not including the first activity statement you lodged).

A GST net refund position means that your total GST credits were more than the total GST payable on your previous activity statements (see, Working out if you are entitled to a refund).

If you lodge monthly activity statements for GST but want to pay GST by instalments, you must first change to quarterly lodgment. However, some businesses (for example, those with turnovers of more than $20 million) must still lodge monthly activity statements.

Option 1 - reporting and paying or claiming quarterly

If your GST turnover is less than $20 million you can report and pay or claim GST amounts each quarter. You can work out your GST amounts using either the:

accounts method
calculation sheet method.

Whichever method you use, each quarter you must report any:

GST on sales
GST on purchases
total sales
exports
other GST-free sales
capital and non-capital purchases.

If you are paying or claiming wine equalisation tax, luxury car tax or fuel tax credits, you also report these amounts each quarter.

Option 2 - paying or claiming quarterly and lodging an annual report

You can work out your GST amounts using either the:

accounts method
calculation sheet method.

Each quarter, you can pay or claim GST amounts and report only:

GST on sales
GST on purchases
total sales.

If you are paying or claiming wine equalisation tax, luxury car tax or fuel tax credits, you also report these amounts each quarter.

You must also complete a separate annual GST information report to report annual amounts for:

any exports
other GST-free sales
capital and non-capital purchases.

You must lodge your annual GST information report by the date your income tax return is due.

If you lodge monthly activity statements for GST but want to change to this option, you must:

be eligible
change to quarterly lodgment.

Option 3 - paying by instalments and lodging an annual return

If you are eligible you can:

pay GST instalment amounts we have given you (or an amount you varied)
use an annual GST return to account for any difference between your GST liability and your total GST instalments for the year.

For more information about GST, small business concessions and working out your annual turnover, visit www.ato.gov.au/sbconcessions

For more information about how to work out your GST turnover, refer to GST for small business (NAT 3014).

Sections within Paying by instalments

Last Modified: Thursday, 2 May 2013