Telling us your choice
You must elect to pay GST by instalments by 28 October in the financial year in which your election relates.
If you are eligible to use the instalments option, we will generally notify you on your 1 July – 30 September quarterly activity statement. You can tell us you are choosing to pay by instalments by selecting this option on this activity statement by 28 October of that financial year. Your election will take effect from 1 July, that is, for the quarter covered by this activity statement.
You may request in writing that your election take effect from the start of an earlier tax period, however, we will only approve your request under exceptional circumstances.
How to change to another reporting option
If you want to change your GST reporting option from instalments to another reporting option, there are two ways depending on what reporting document you receive from us in the first quarter of the financial year. If you receive:
- an activity statement, you can advise us by electing a different option box on that quarter's activity statement
- a quarterly GST instalment notice instead of an activity statement, you will need to contact us.
If you want your change to take effect immediately for the current financial year, you will need to notify us of your decision by 28 October of that financial year. If you don’t notify us by this date, the change can only take effect from the start of the following financial year.
When your election ceases to have effect
Your GST instalment election ceases to have effect if any of the following applies:
Revoking your election
If you revoke your election on or before 28 October in the relevant financial year, your election will cease to have effect from 1 July of that financial year. If you revoke your election after 28 October, it will cease to have effect from 1 July of the next financial year.
If we disallow your election
Your election can be disallowed if we are satisfied you have failed to comply with one or more of your taxation obligations.
If your turnover exceeds the threshold or no longer a small business entity
If you are carrying on an enterprise that is not a business and on 31 July in a financial year, your projected GST turnover is $2 million or more, or if you carry on a business and you are no longer a small business entity in an income year then your election will cease to have effect from 1 July of that financial year.
If there is a change in membership
If there is a change in the membership of a GST group of which you are the representative member, you will cease to pay GST by instalments from the time the membership changes. You will be required to lodge a GST return for the relevant period and pay or receive a refund of any difference between your actual GST liability and instalments you have paid on behalf of the group.
If you go bankrupt, into liquidation or receivership
Your GST election ceases if you become bankrupt, go into liquidation or receivership. Your election to pay GST by instalments will end the last day before such an event. You will be required to lodge a GST return for the relevant period and pay or receive a refund of any difference between your actual GST liability and instalments you have paid.
If you die, cease to carry on enterprise, or GST registration is cancelled
Your GST election ceases when you die, cease to carry on any enterprise, or your GST registration is cancelled.