You may elect this reporting method if you meet all of the following eligibility requirements:
- You either
- carry on a business with an aggregated turnover of less than $10 million
- do not carry on a business and your GST turnover is $2 million or less.
- You do not and are not required to report GST monthly.
- You have a current, continuous BAS lodgment record of at least 4 months immediately preceding the current tax period.
- You have complied with all your obligations to lodge previous GST returns (BAS and annual returns).
- You are not in a net refund position. You are in a net refund position if your total GST credits are more than the total GST you're liable to pay for a certain number of tax periods.
You shouldn't choose the GST instalments reporting method if you think you'll be in a net refund position – that is, if your total GST credits for the year will be more than the total GST you're liable to pay. With the instalments reporting method we only pay refunds after you lodge your annual GST return, not each quarter.
The GST instalment amount is only for GST. If you have other tax obligations on your activity statement, such as pay as you go (PAYG) withholding or PAYG instalments, you must still report and pay these.