Instalment activity statement (IAS)

Definition

The instalment activity statement (IAS) is a form used by businesses in Australia to report and pay their pay as you go (PAYG) instalments, goods and services tax (GST) instalments, and other taxes to the Australian Taxation Office (ATO).

What is an instalment activity statement?

An instalment activity statement serves as a method for businesses to fulfil their tax obligations in a structured and timely manner. The frequency of IAS filing depends on the reporting period chosen by the business and its tax obligations. Businesses may be required to file their IAS either monthly or quarterly, depending on their revenue and other factors.

In addition to PAYG and GST instalments, the IAS may also include sections for reporting and paying other taxes and obligations, such as fringe benefits tax (FBT) instalments and luxury car tax (LCT) instalments, if applicable to the business.

Businesses can make variations or adjustments to their PAYG and GST instalments on the IAS if their circumstances change during the reporting period. This allows businesses to account for fluctuations in income or expenses and ensure that their instalment payments accurately reflect their tax liabilities.

Compliance with IAS filing and payment obligations is essential to avoid penalties and interest charges imposed by the ATO for late or non-compliance. Businesses must make sure they meet their reporting and payment deadlines to remain compliant with tax laws and regulations.

Example of an instalment activity statement

XYZ Pty Ltd instalment activity statement – March 2024

PAYG instalments:

• Total estimated income tax liability: $10,000
• Quarterly PAYG instalment amount: $2,500

GST instalments:

• Total estimated GST liability: $6,000
• Quarterly GST instalment amount: $1,500

Total amount payable: $4,000

In this example, XYZ Pty Ltd is required to pay a total of $4,000 to the Australian Taxation Office to cover its estimated income tax and GST liabilities for the quarter.