Every year ATO adjust GST and Pay As You Go (PAYG) instalment amounts using a formula known as the Gross Domestic Product (GDP) adjustment. But due to COVID 19, the government has introduced changes this year.
In response to COVID-19, indexation for GST and PAYG instalments has been suspended for the 2020-21 income year. Consequently, there will be no GDP adjustment used to determine quarterly GST and PAYG instalment amounts for the 2020–21 income year.
ATO has announced that any PAYG instalment variations for the 2019–20 income year do not carry over to the 2020-21 income year. Taxpayers will have to vary their PAYG instalments again for the 2020–21 income year if their instalment amounts will result in them paying too much or too little tax for the year.
Businesses can lodge their variation through:
the Business PortalExternal Link
your registered tax agent
Accurately calculating and paying the right PAYG instalment amounts will help you manage a healthy cash flow. You can seek professional help from KPG Taxation experts and receive benefits of healthy cash flow. Call us today or contact us through our website: https://www.kpgtaxation.com.au/contact-us/
Taxpayers should continue varying GST instalments on their quarterly activity statements. Visit KPG Taxation blog for current updates on Taxation related news in Australia. https://www.kpgtaxation.com.au/blog/