In joint media release No 2012/120, issued 22 October 2012, the Treasurer, Wayne Swan, and the Assistant Treasurer and Minister Assisting for Deregulation, David Bradbury, announced a three year process to reform the timing of company tax payments by large companies, better aligning them with GST payments by large businesses.
The total tax paid by companies will not change, but from 1 January 2014 companies with turnover of $1 billion or more will be required to remit their Pay As You Go (PAYG) company tax instalments monthly, not quarterly. Companies with turnover of $100 million or more will have a further one year period to prepare for this change, with monthly payments to start on 1 January 2015. Companies with turnover of $20 million or more will have over three years to prepare for the change, with monthly payments to start on 1 January 2016.
This measure will affect around 350 companies from 1 January 2014, around 2,500 companies from 1 January 2015 and around 10,500 companies from 1 January 2016.
Mr Swan and Mr Bradbury said that a consultation paper will be released by early next year.