Answer to Question #79837 in Finance for Hugh Heron

Question

The activity statement allows a business to calculate obligations, allowing a single payment or refund for each reporting/ payment period, across the taxes.

For example, if in a quarterly reporting/ payment period, a business had:

a GST credit of $15,000
a PAYG instalment liability of $6,000
a PAYG withholding liability of $1,500, and
an FBT liability of $1,000
Would the business need to make any payments?

Answer 1

Business must pay FBT and separate Income Tax. FBT based on the initial data should be $1,000.