Why your PAYG withholding reporting cycle might soon change (June 2024 Tax Update)

Relevant For:

Australian small to medium business owners managing PAYG withholding obligations.

Key Points:

  • ATO annually reviews PAYG withholding cycles based on annual withholding amounts.
  • Small withholders ($25,000 or less) report and pay quarterly.
  • Medium withholders (over $25,000 up to $1 million) report and pay monthly.
  • Large withholders (over $1 million) pay electronically within 6-8 days of withholding events and have a unique payment reference number.
  • Businesses moving from small to medium withholder status must transition from quarterly to monthly reporting from 1 July 2024.
  • Updating payroll software before 1 July helps to ensure compliance with the new cycle.

Full Article:

Each year the ATO reviews PAYG withholding cycles for businesses based on their annual withholding amounts. The payment and reporting cycles are:

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