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Annual instalment activity statement (GI)

Refer to Business activity statements on the ATO website for more information about the preparation and lodgment of activity statements.

Annual instalment activity statement in PLS

The Activity statements obligations homepage enables you to download your list of activity statement obligations from the ATO, download pre-fill data, create, and pre-lodge activity statements for PLS. For details refer to Activity statement obligations homepage (ASO).

For information on deleting activity statements refer to Working with supporting schedules.

About PAYG instalments

Most individuals and entities with business or investment income are required to pay Pay As You Go (PAYG) instalments on that income. Depending on certain criteria, quarterly or annual instalments may be made.

Quarterly instalments

PAYG instalments will generally be paid quarterly on the 28th of the month following the end of the quarter. However, these dates may be varied by the ATO who will advise if this is the case.

If a taxpayer's income year ends on a date other than 30 June, the first instalment quarter consists of the first three months of the income year, and so on.

Annual PAYG payments

Taxpayers may pay annually if, at the end of the first instalment quarter for which they are liable to pay an instalment:

  • the tax liability based on the most recent tax return as notified by the Commissioner of Taxation is less than $8000, and

  • the taxpayer (or a partnership in which the taxpayer is a partner) are not registered or required to be registered for GST.

Further, if the taxpayer is a company, it must not be involved in a GST joint venture or part of an instalment group. An instalment group is a group of companies that are related to each other according to a majority control test. The group consists of:

  • a controlling company (not under majority control of another company) that has the majority control of at least one other company, and

  • each other company under the majority control of that controlling company.

If a business wishes to pay PAYG annually, and it meets the above criteria, the ATO must be notified by the due date for the first instalment for an income year for which it is liable.

How to complete an Annual activity instalment statement

For Activity Statement Pilot sites only

Refer to Creating an activity statement in the obligations homepage to create or open an activity statement.

Create an Annual instalment activity statement
  1. Click PreparationSchedule > Annual Instalment Activity Statement (GI).

  2. Select the PAYG payment option:

    • Option 1: Pay a PAYG Instalment Amount Annually

      Answer Yes to option 1 for eligible taxpayers to report and pay the annual PAYG Instalment amount advised by the ATO.

      If an eligible taxpayer chooses this method, they cannot revert to option 2 until the next income year.

    • Option 2: Calculate PAYG Instalment Using Income Tax Rate

      Answer Yes to option 2 for taxpayers calculating and paying their PAYG instalment annually using the tax rate method. Complete labels T1, T2 and T11.

PAYG payment options

Annual IAS – PAYG payment option 1

  • Label T5 ATO instalment amount: This is your notional tax amount as worked out by the ATO.
  • Label T6 Varied instalment for the period: This is the calculated PAYG instalment for the period and is entered if the instalment is being varied from the amount notified by the ATO at Item T5.
  • Label T4 Reason code for variation: If the instalment is being varied, the reason for the variation must be selected from the list, also see Label T4 below under Option 2.
  • Label 5A Total amount payable: This amount shown in this field will equal T5 or T6 if the instalment amount has been varied.

Annual IAS – PAYG payment option 2

  • Label T1 PAYG Instalment income: Enter the taxpayer's instalment income for the instalment period.
  • Label T2 Commissioner's rate: The instalment rate is provided by the ATO at Label T2 on each activity statement. This rate cannot be varied.
  • Label T11: This is calculated as T1 X T2.
  • Label 5A Total amount payable: This amount shown in this field will equal T11
Estimate of time taken to complete this form

Enter how long it took you to complete this activity statement. Include the time actually spent:

  • reading the instructions, working on the questions and obtaining the information

  • by all employees in collecting and providing the information.

Electronic declaration for IAS

When the Annual instalment activity statement is lodged electronically, a declaration is required.

As the declaration states – "This declaration is to be used if an entity chooses to use a third party for returning an activity statement to the ATO", it is the responsibility of the entity to retain this declaration for a period of five years after the declaration is made.

To print the declaration

  • Click Reports > Print Schedule, and select the Include ELD checkbox, to print the declaration as standalone, or

  • click Reports > Print Return, and select the Include ELD checkbox, to include the declaration when printing the return, or

  • click Reports > Print ELD and highlight the declaration you require to print from the list provided. This list offers those declarations appropriate to the return currently open or highlighted in the Return index.

When lodging an annual IAS return, the necessary declaration is included in the transmission file by Tax.

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