Changes to PAYG withholding cycles

July 23, 2014

123rf - PAYG

From 1 July 2014 a number of Australian businesses will have their PAYG withholding cycles changed, based on the amount of PAYG withheld by the ABN in the 2012-13 financial year.

The ATO awards businesses small, medium or large withholder status according to the amount of PAYG that can be expected to withhold from their employees. Small withholder status applies to businesses withholding less than $25 000, with businesses withholding between $25 000 and $1 million having medium withholder status. Large withholder status applies to businesses withholding over $1 million, or with an annual turnover of more than $20 million.

Small withholders are required to report and pay their PAYG on a quarterly basis; however, a small withholder may also elect to pay their withheld amounts monthly. Medium withholders are now obliged to report to the ATO on a monthly basis. There are also currently no provisions allowing businesses to contest the requirement to report their PAYG monthly.

In order to remain compliant, large withholders are required to report weekly and to make electronic PAYG payments twice weekly. This may place a significant human resources drain on businesses that only just exceed $1 million in withheld PAYG. All businesses that will experience changes to their PAYG withholder status should receive written communication from the ATO detailing the changes.

Our accountants are here and ready to help with any questions you may have regarding PAYG in general and PAYG withholding cycles.
Call (02) 4926 2300 or email us.


Changes to PAYG withholding cycles came in to effect on 01 July 2014, to discuss these changes further please do not hesitate to contact Leenane Templeton.

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