Document ID: chunk:federal_register_of_legislation:C2025C00126:clause:3_16:p57
Version: federal_register_of_legislation:C2025C00126
Segment Type: clause
Provision Reference: sch 3 cl 16 (pt 57/58)
Character Range: 780498–783031

mainly modify the operation of Part 2‑7, but they may affect other Parts of Chapter 2 in minor ways.

Division 162—Payment of GST by instalments

Table of Subdivisions
162‑A Electing to pay GST by instalments
162‑B Consequences of electing to pay GST by instalments
162‑C GST instalments
162‑D Penalty payable in certain cases if varied instalment amounts are too low

162‑1  What this Division is about

      You may be able to elect to pay GST by instalments. If you do, GST returns are given to the Commissioner annually, and quarterly instalments of GST are paid on the basis of the Commissioner's or your estimates of what your annual GST liability will be (followed by a reconciliation based on the annual GST return).
      If you can average your income for income tax purposes, you only pay the last 2 quarterly instalments.
Note: In some cases, you will only pay the last 2 quarterly instalments: see section 162‑105.

Subdivision 162‑A—Electing to pay GST by instalments

162‑5  Eligibility to elect to pay GST by instalments
 (1) You are eligible to elect to pay GST by instalments if:
 (a) either:
 (i) you are a *small business entity (other than because of subsection 328‑110(4) of the *ITAA 1997) for the *income year in which you make your election; or
 (ii) you do not carry on a *business and your *GST turnover does not exceed the *instalment turnover threshold; and
 (b) the current tax period applying to you is not affected by:
 (i) an election under section 27‑10 (election of one month tax periods); or
 (ii) a determination under section 27‑15 (determination of one month tax periods); or
 (iii) a determination under section 27‑37 (special determination of tax periods on request); and
 (c) your *current GST lodgment record is at least 4 months; and
 (d) you have complied with all your obligations to give *GST returns to the Commissioner; and
 (e) you are not in a *net refund position; and
 (f) you are not a *limited registration entity.
 (2) The instalment turnover threshold is:
 (a) $2 million; or
 (b) such higher amount as the regulations specify.
 (3) You are in a net refund position if the sum of all your *assessed net amounts is less than zero, for the tax periods for which *GST returns fell due during the period referred to in the relevant item in the third column of this table.

When you are in a net refund position
Item                                   If your *current GST lodgment record is…     Take into account this period to work out whether you are in a net refund position: