How is the GDP adjustment calculated?
We update the GDP adjustment factor at the start of each income year using national accounts data provided by the Australian Bureau of Statistics. The adjustment is based on GDP activity over the previous two calendar years. Using this data, the GDP adjustment for the 2016-17 year is 2%.
The 2% GDP adjustment factor will apply to instalments for the 2016-17 income year for taxpayers whose income year starts on or after 1 April 2015.
The 2% GDP adjustment factor will be used in the calculation of your PAYG instalments if you choose to pay the quarterly instalment amounts we work out for you.
For eligible GST payers, the GDP adjustment factor that applies in 2016-17 is also 2%.
This does not affect you if you choose to work out your own instalments (using the 'rate' method) or to pay annually, because the GDP adjustment factor is not applied to your instalments.