For 2009-10 income year, Government to reduce GDP adjustment factor for calculating quarterly instalments under the GDP-adjustment method
For the 2009-10 income year, the Federal Government will reduce the GDP adjustment factor for calculating quarterly instalments under the GDP-adjustment method from around 9 percent to 2 percent.
This aligns with the expected increase in the CPI for 2009-10. This effectively means that small businesses that pay PAYG instalments under the GDP-adjustment method may reduce their PAYG instalments.
The Government expects that this measure will provide cash flow benefits to approximately 1.5 million eligible small businesses.
Accountants and business advisors BDO Kendalls says while the PAYG amendments will provide welcome relief for certain small businesses, it queries why the Government did not extend similar relief to all other taxpayers, many of whom are struggling in the current economic environment.