• What happens if you vary your instalment amount and it is too low?

    If you vary your instalment amount, you may have a shortfall in any of the following:

    1. the total of your instalments for the year
    2. the estimate of your annual GST liability on which you based your varied instalment amount for any quarter
    3. your varied instalment amount for a quarter.

    A penalty may apply to a shortfall, but for a particular quarter the penalty will apply to only one type of shortfall.

    A penalty may apply to a shortfall for a quarter in which you varied your instalment amount if the total of your GST instalments (and any net GST amounts) is less than 85% of your actual GST liability for the year.

    If you have a type 2 or 3 shortfall for the quarter, you may incur a penalty if both of the following apply:

    • the estimated annual GST liability on which you base your varied instalment amount for a quarter is less than 85% of your actual GST liability for the year  
    • your varied instalment amount for that quarter is less than or equal to 25% of your actual GST liability for the year.

    If you have a type 3 shortfall for the quarter, a penalty may apply if your varied instalment amount, together with your GST instalments (and any net amounts) paid or payable for any previous quarters in the year, is less than the percentage of your estimated GST liability for the year as detailed in the below table.

    Percentage of estimated GST liability

     

    September quarter

    25%

     

    December quarter

    50%

     

    March quarter

    75%

     

    June quarter

    100%

    If a penalty applies because you varied an instalment amount and it was too low, the shortfall will be reduced if you paid any extra amounts in a later quarter.

      Last modified: 20 May 2014QC 16431