On 9 May 2023, as part of the 2023–24 BudgetExternal Link, the Australian Government announced the gross domestic product (GDP) adjustment factor for PAYG and GST instalments will be set to 6% for the 2023–24 income year. This is a reduction from 12% under the statutory formula. This measure is now law.
The reduced factor will provide cash flow support to small businesses and other PAYG instalment taxpayers.
The 6% GDP adjustment rate will apply to:
- small businesses and individuals who are eligible to use the relevant instalment methods (up to $10 million aggregated annual turnover for GST instalments and $50 million annual aggregate turnover for PAYG instalments)
- instalments for the 2023–24 income year that are due after the enabling legislation receives royal assent.
Keep up to date at our Small business newsroom.The gross domestic product (GDP) adjustment factor for PAYG and GST instalments has been set to 6% for 2023–24.