(1) You are liable to pay a penalty, for a * GST instalment quarter of an * instalment tax period applying to you, if you have a * varied instalment amount for the GST instalment quarter, and:

(a) if the instalment tax period is a * financial year--the sum of your * GST instalments for all the GST instalment quarters of the instalment tax period is less than 85% of your * annual GST liability for the instalment tax period; or

(b) if the instalment tax period is only part of a financial year--the sum of:

(i) your * GST instalments for all the GST instalment quarters of the instalment tax period; and

(ii) your * early net amounts for the financial year (subtracting any of those amounts that are less than zero);

is less than 85% of your annual GST liability for the instalment tax period.

(2) The amount of the penalty, for a particular day, is worked out by applying the * general interest charge:

(a) for each day in the period in section 162-190; and

(b) in the way set out in subsection 8AAC(4) of the *Taxation
Administration Act 1953 *;

to your * GST instalment shortfall, under this section, for the * GST instalment quarter.

(3) Your ** GST instalment shortfall **, under this section, for the
* GST instalment quarter is the amount worked out as follows:

where:

**
"GST already payable" **is the sum of:

(a) the * varied instalment amount; and

(b) all your other * GST instalments (if any) for earlier * GST instalment quarters of the * instalment tax period in question; and

(c) if the instalment tax period is only part of a * financial year--your * early net amounts for the financial year (subtracting any of those amounts that are less than zero).

(4) However, if:

(a) the * GST instalment quarter is not the first GST instalment quarter of the * instalment tax period in question; and

(b) you are liable for one or more penalties under this section in relation to any of the earlier GST instalment quarters of the instalment tax period;

then:

(c) your ** GST instalment shortfall **, under this section, for the
* GST instalment quarter is the difference between:

(i) the amount worked out using the formula in subsection (3); and

(ii) the sum of all your GST instalment shortfalls for those earlier GST instalment quarters; and

(d) if that sum is greater than the amount worked out using the formula in subsection (3)--you are not liable to pay a penalty under this section in relation to the GST instalment quarter.

(5) The ** appropriate percentage **for a
* GST instalment quarter is:

(a) if the GST instalment quarter ends on 30 September--25%; or

(b) if the GST instalment quarter ends on 31 December--50%; or

(c) if the GST instalment quarter ends on 31 March--75%; or

(d) if the GST instalment quarter ends on 30 June--100%.