Reporting using the instalments option
When you pay GST by instalments you still report using your activity statement.
You must also report any:
- pay as you go (PAYG) amounts you withheld
- PAYG instalments you paid.
The fringe benefits tax, wine equalisation tax and luxury car tax labels will only appear on your activity statement if your business has any of these obligations. Fuel tax credit labels will also appear if you are registered to claim fuel tax credits.
You use an annual GST return to account for any difference between your:
- GST liability, plus any wine equalisation tax or luxury car tax you may have to pay or can claim
- total GST instalments for the year.
If your total instalments are:
- more than your GST liability, plus any wine equalisation tax or luxury car tax for the year, you can claim a refund from us
- less than your GST liability, plus any wine equalisation tax or luxury car tax – you must pay the difference to us by the time your annual GST return is due.
You must lodge your annual GST return and make any balancing payment by the date your income tax return is due. If you are not required to lodge an income tax return, you must lodge your annual GST return and make any balancing payment by 28 February after the end of the financial year covered by the annual return.
In your annual GST return you report:
- GST on sales and on purchases (labels 1A and 1B)
- GST on sales (label 1A)
- GST on purchases (label 1B)
- total sales G1, exports G2
- other GST-free sales G3
- capital G10 and non-capital purchases G11.
If you are paying or claiming wine equalisation tax or luxury car tax, you also report these amounts for the year at labels 1C, 1D, 1E and 1F. Fuel tax credits are reported each quarter.
You can work out your wine equalisation tax and luxury car tax amounts using either the:
- accounts method
- calculation sheet method.
On your activity statement you must show which method you used:
- accounts method to work out GST amounts, you can report either GST-inclusive or GST-exclusive amounts
- calculation sheet method to work out GST amounts, you report GST-inclusive amounts.
Working out if you are in a net refund position
You are in a net refund position if your total GST credits were more than the total GST payable on your previous activity statements.
We work this out from your previous activity statements for a maximum of 12 months, but do not include your first three months’ lodgment.
You are not in a net refund position if, at the start of the year, both of the following apply:
- You have lodged activity statements for at least 13 months
- Your total GST payable is more than your total GST credits for the past 12 months.
If you have been registered for less than 13 months and you have lodged quarterly, you take into account all activity statements you have lodged, except the first one.
Include any wine equalisation tax or luxury car tax you have paid or claimed when you are working out whether you are in a net refund position.
Working out if you are in a net refund position may be different if you are a new business.
Information regarding reporting and paying GST by instalments