Why does the Tax Office exclude the first quarter activity statement?
Businesses that are recently registered for GST first become eligible to pay a GST instalment amount after they have reported their actual GST for two quarters. The first quarter is not counted because the business may have commenced part way through the quarter and the net GST amount on that activity statement may not reflect a true quarterly position for the business. Where a business has been registered for GST for five or more quarters, the GST instalment will be based on four quarters of actual net GST amounts.