Label 7 Deferred Company/Fund Instalment Worksheet

If the entity has lodged an income tax return for the previous income year, there should be a figure at Label 7 of the pre-printed form. This is an instalment of the deferred instalment liability. This amount needs to be included in the net amount of the entity's obligations at Label 9.

If there is no amount at Label 7 on the pre-printed form and the business has chosen to defer part of the final instalment liability for the previous income year and have now become liable to repay some part of that deferred amount, this amount needs to be calculated to be repaid.

To calculate the deferred company/fund instalment

Amount of assessed tax for the year: Calculate the amount of the business's assessed tax for the previous income year and the amount of the final instalment for that income year.
Amount of the final instalment for that year: Enter the amount of the final instalment for the income year.
Amount that may be deferred: This field is calculated by Tax as being the lesser of:
- the maximum amount that can be deferred, or as much of the maximum amount that the entity would like to defer, and
- the amount of the final instalment.
Amount to be deferred if not the maximum: Enter the amount the business wishes to pay
Quarterly instalment amount: This field is calculated by Tax using the following formula and information from the maximum deferment amount table (Step 3.):
Quarterly instalment amount
=
Amount being deferred Number of quarterly payments

Example of final instalment being less than the maximum amount

The assessed tax of ABC Pty Ltd for the income year was $10,000 and its final instalment for that year was $3150.

The maximum amount it can defer is the lesser of:

$4,200, that is, 42% of $10,000, and
$3,150, that is, the amount of the final instalment.

However, ABC may choose to defer less.

Unless it chooses to defer less, the amount of its quarterly payment is $150, that is, $3,150 divided by 21 (number of quarterly payments).

Example of the maximum amount being less than the final instalment:

The assessed tax of XYZ Pty Ltd for the income year was $10,000 and its final instalment for that year was $4,500.

The maximum amount it can defer is the lesser of:

$4,200, that is, 42% of $10,000, and
$4,500, that is, the amount of its final instalment.

However, XYZ may choose to defer less.

Unless it chooses to defer less, the amount of its quarterly payment is $200, that is, $4,200 divided by 21 (number of quarterly payments).

Because XYZ's final instalment was $4,500, which is more than the maximum amount it can defer, it will need to pay the difference of $300 when its final company or fund instalment is due.