Money Doesn’t Come Without Guidance ...
The small businesses with an annual turnover of less than $2 million may qualify for a range of PAYG instalment concessions. In place of a small business, you may be entitled for the following PAYG instalment concessions:
First quarter of your income year, you can select the GDP-adjusted instalment option. After that the selected GDP-adjusted instalment option applies for the whole of the income year. If you select this option, you must pay the amount shown at label T7 on your activity statement or instalment notice.
How the ATO works out your instalment amount
The information ATO uses to work out your instalment amount is generally taken from your most recently assessed income tax return. ATO also adjusts your instalment amounts to take expected economy changes (as measured by GDP) into account. If you select to pay the PAYG instalments the ATO determines for you, ATO will estimate your income tax when they process your income tax return in the following way: