Businesses use an activity statement to report and pay a number of tax obligations. Activity statements are also used by individuals who need to pay quarterly pay as you go (PAYG) instalments. Your activity statement is personalised to your situation and any options you’ve previously chosen. You can lodge and pay electronically, by mail or in person, but you need to do it on time to avoid interest and penalties. If you can’t lodge or pay by the due date, contact us as soon as possible. If you’re a business, you can lodge your activity statements online or use a paper form. Lodging online is quicker and most quarterly lodgers get an extra two weeks to lodge (terms and conditions apply). You can download a GST calculation worksheet here to work out how much you will need to pay in relation to GST on your business activity statement. There is also a description of each of the elements of Business Activity Statement Available here:
Goods and services tax (GST) – Labels G1, G2, G3, G10, G11, G21, G22, G23, G24, 1A and 1B.
As a business you use an activity statement to report and pay the GST your business has collected and claim GST credits. Most businesses report and pay their GST quarterly and have a choice each year about how they do this.
Pay as you go (PAYG) income tax instalment – Labels T1, T2, T3, T4, T7, T8, T9, T11, 5A and 5B.
You may receive an activity statement or an instalment notice to pay your PAYG income tax instalment. You can generally choose between two payment options, and you can vary your instalments in some circumstances.
Pay as you go (PAYG) tax withheld – Labels W1, W2, W3, W4, W5 and 4.
PAYG tax withheld is the amounts you withhold from payments to employees, contractors and company directors. You may also have to withhold from payments to other businesses if they don’t quote their Australian business number (ABN) to you.
Fringe benefits tax (FBT) instalment – Labels F1, F2, F3, F4, 6A and 6B.
FBT is separate from income tax. If you had to pay FBT of $3,000 or more in the previous year, you need to pay the tax quarterly by instalments with your activity statement.
Luxury car tax (LCT) – Labels 1E and 1F.
LCT applies to cars with a GST-inclusive value exceeding the LCT threshold ($57,466 for the 2010–11 income tax year).
Wine equalisation tax (WET) – Labels 1C and 1D.
WET applies at 29% of the value of the wine at the last wholesale sale (before adding GST). It’s generally paid by wine producers or wholesalers. If you report and pay GST using a pre-printed instalment amount (option 3 on the activity statement), don’t complete the WET section of your activity statement. We have included your WET in this amount.
Fuel tax credits – Labels 7C and 7D.
Fuel tax credits provide you with a credit for the fuel tax (excise or customs duty) included in the price of fuel you use in business activities, machinery, plant, equipment and heavy vehicles.
Instalment notices for GST and PAYG instalments
You may receive a quarterly GST and/or PAYG instalment notice instead of an activity statement. This will happen if you’ve chosen to use the instalment amounts advised by the ATO for these obligations and have no other reporting obligations.
You can download a sample of a business activity statement here:
Sample Business Activity Statement
