This explains the gross domestic product (GDP) adjustment we use to work out your goods and services (GST) instalment amount for the 2012-13 income year.
Your GST instalments should reflect your expected tax liability for the current income year as accurately as possible. We adjust your GST instalment amount to reflect expected changes in the economy. This is called the GDP adjustment.
If your GST instalment amount was based solely on your previous tax situation without being adjusted, it may not cover your actual tax liability. In this situation, you would make an extra payment when you lodge your GST annual return.
The GDP adjustment is worked out using information from earlier years. This means it may not match current economic conditions. When economic growth slows, the GDP adjustment may seem relatively high, while in conditions of sudden economic growth, the GDP adjustment may seem relatively low.
GST instalment amount
We base the GST instalment amount shown at box G21 on your activity statement or instalment notice on the actual GST net amounts you reported in your previous activity statements, instalment notices or your most recent GST annual return.
If you are newly registered for GST, we exclude the net amount for your first quarter when we work out your GST instalment. This is because the net amount for your first quarter might be affected by start-up costs.
GDP adjustment for 2012-13
The Commissioner of Taxation will use a 6% GDP adjustment to calculate GST instalments for the 2012-13 income year.
Last Modified: Tuesday, 3 July 2012