Annual PAYG instalment notice
Although annual PAYG instalments are not due until 21 October 2009, the instalment notice is issued in early July 2009. This will enable you to identify:
- clients with an annual PAYG instalment obligation, and
- the amount of their 2009 PAYG instalment liability.
Your clients are entitled to a credit for their annual PAYG instalment in their income tax assessment - regardless of whether or not they have paid the instalment amount owing. The obligation to pay the annual PAYG instalment liability by the due date still remains. GIC will apply to any amount not paid by the due date.
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If you intend to vary your client's annual PAYG instalment amount, please do this prior to lodging your client's income tax return.
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You can vary your client's annual PAYG instalment amount if their situation has changed since their last income tax return and they believe that paying the amount calculated by us will result in them paying more or less than their actual income tax liability for the year. To use this option, you need to be able to reliably estimate or determine the tax payable on their business and investment income for the year.
To vary the annual PAYG instalment, complete labels T6, T4 and 5A on the back of the annual PAYG instalment notice and return to us before you lodge their income tax return, or by 21 October, whichever is earlier. You will also need to pay the varied amount by 21 October.
Your client may be liable to the general interest charge if you vary their PAYG instalment amount down, and end up paying less than 85% of the actual tax payable on their business and investment income.
Proposed changes to the GDP adjustment for the 2009-10 income year
On 28 March 2009, the Federal Government announced that the GDP adjustment used to calculate quarterly GDP-adjusted PAYG instalments will be reduced from 9% to 2% for the 2009-10 income year.
The effect of this proposed change is to:
- align the GDP adjustment with expected growth in the consumer price index (CPI), and
- make sure that your clients' PAYG instalment obligations are closer to their actual income tax liability for the year.
We will also use the reduced 2% GDP adjustment factor when determining GST quarterly instalments for the 2009-10 income year.
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Legislation amendments will need to be enacted to give effect to this announced proposal.
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Have you advised us that your clients' new address is to be used for activity statements/instalment notices?
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If your client has changed their postal address remember to tell us specifically if you want to use this new address for activity statements/instalment notices.
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If you are telling us your client has changed their postal address (via a client's income tax return or during the year), you must tell us specifically if you want to use this address for activity statements/instalment notices.
You can tell us by:
- using the Tax Agent Portal
- lodging a Client Update (CU) form via ELS, or
- calling the Tax Agent help line on 13 72 86 Fast Key Code 1 1 3.
Annual GST returns and information reports
If a taxpayer elects to use the simplified reporting method to report and pay GST - that is, pay or claim GST amounts quarterly and lodge annually (option 2) - they are required to lodge an annual GST information report.
If a taxpayer is a GST instalment payer (option 3), they are required to lodge an annual GST return.
If a taxpayer elects the annual GST reporting method - that is, to report GST annually and pay (or claim a refund of) GST annually - they are required to lodge an annual GST return.
The due date for lodgment (and payment where required) of annual GST returns and annual GST information reports is:
- the due date of the taxpayer's income tax return if a taxpayer has an income tax return lodgment obligation, or
- 28 February 2010 if a taxpayer does not have an income tax return lodgment obligation.
Sections within Obligation type
Last Modified: Wednesday, 30 March 2011