26 Mar 13 Monthly PAYG instalments for large taxpayers
In media release No 2013/036, issued 25 March 2013, the Assistant Treasurer and Minister Assisting for Deregulation, David Bradbury, announced the release of exposure draft legislation and explanatory materials for consultation on changes to the Pay As You Go (PAYG) system.
The draft legislation will require large corporates to pay their tax instalments monthly rather than quarterly, as announced in the 2012-13 Mid-Year Economic and Financial Outlook (MYEFO).
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.
The closing date for submissions is Monday 15 April 2013.