28 Feb 13 Monthly PAYG Instalments for large taxpayers
On 22 October 2012, as part of the 2012-13 Mid-Year Economic and Fiscal Outlook, the Australian Government announced a three year process to reform the timing of large companies Pay As You Go (PAYG) instalments. The amendments are intended to align large companies' tax instalments with both their GST payments, and their income and trading conditions, by requiring them to make PAYG instalments monthly, rather than quarterly.
It is anticipated that this change will be implemented in three stages.
Companies that meet or exceed a $1 billion annual turnover threshold will migrate to the new system from 1 January 2014. Companies that meet or exceed annual turnover thresholds of $100 million or $20 million will migrate from 1 January 2015, and 1 January 2016, respectively.
To avoid imposing undue compliance burdens, companies with an annual turnover between $20 million and $100 million that are not consolidated for income tax purposes, will not be required to move to monthly PAYG instalments if they pay their GST quarterly or annually.
In media release No 2013/021, issued 28 February 2013, the Assistant Treasurer and Minister Assisting for Deregulation, David Bradbury, announced the release of a consultation document for public comment. The closing date for submissions is Wednesday 13 March 2013.