• Varying your GST instalments

    You can vary your instalment amount if you think that the total of your advised instalment amounts will be more (or less) than your actual GST liability for the year. You can vary your instalment amount for any quarter but you cannot vary it below zero.

    Penalties may apply if your varied instalment amount or your estimate of your annual GST liability is too low. You will not incur any penalty if each quarter you pay the instalment amount advised by the ATO and you do not vary in any quarter. This is the case even if the total of these instalments is less than your actual GST liability for the year.

    To vary your instalment amount for a quarter you should:

    • work out your estimated annual GST liability. If you have a wine equalisation tax or luxury car tax liability, you need to take these into account when working out your estimated annual GST liability
    • compare the total amount you would pay for the year using your advised instalment amount each quarter with your estimated annual GST liability; if there is a difference, you may wish to vary your instalment amount
    • work out your varied instalment amount for the quarter, see how do you work out your varied instalment amount for the quarter
    • write your varied instalment amount and your estimated annual GST liability in the appropriate labels on your activity statement, see how do you vary your instalment amount
      Last modified: 20 May 2014QC 16431