Each year we adjust pay as you go (PAYG) instalment amounts using a legislative formula that takes into account the expected growth in the economy. This is known as the gross domestic product (GDP) adjustment and is based on data published by the Australian Bureau of Statistics (ABS).
From 1 July 2014, the GDP adjustment used to work out quarterly PAYG instalment amounts will be 4% for the 2014-15 income year.
Taxpayers with a substituted accounting period (SAP) whose financial year commenced on 1 January, 1 February or 1 March 2014 will use the 2013-14 GDP adjustment of 3%. This is because their financial year commenced prior to the implementation of the current year’s GDP uplift factor of 4%.
Those taxpayers commencing their financial year from 1 April 2014 will use the GDP adjustment of 4%.