Claims by the Labor Party in Senate Estimates today that the variation arrangements for GST could lead to only annual payments are completely false.
Variations are made by estimating annual GST and then paying an adjusted instalment each quarter. By the end of the first quarter, 25% of the estimated annual amount is paid; by the second quarter, 50 % of the estimated annual amount is paid; by the third quarter, 75% of the estimated annual amount is paid and by the fourth quarter 100%.
The estimate needs to be at least 85% of the actual GST payable for the year to avoid the general interest charge.
The Labor Party is wrong again.
23 February 2001