The Government will extend the requirement to make monthly PAYG income tax instalments to include all large entities in the PAYG instalment system, including trusts, superannuation funds, sole traders and large investors.
The Government has already announced that
- corporate tax entities with turnover of more than id=”mce_marker”bn will move to monthly PAYG instalments from 1 January 2014;
- corporate tax entities with turnover of id=”mce_marker”00m or more will move to monthly PAYG instalments from 1 January 2015; and
- corporate tax entities with turnover of $20m or more will move to monthly PAYG instalments from 1 January 2016.
Draft legislation to implement these measures was released in March 2013.
The Government has now announced that:
- all other entities in the PAYG instalment system with turnover of id=”mce_marker”bn or more will move to monthly PAYG instalments from 1 January 2016; and
- all other entities in the PAYG instalment system with turnover of $20m or more will move to monthly PAYG instalments from 1 January 2017.
Entities, other than head companies or provisional head companies, that have a turnover of less than id=”mce_marker”00m and report GST on a quarterly or annual basis will not be required to pay PAYG instalments monthly.
In addition, to ensure the continued equity of the system, entities in the taxation of financial arrangements (TOFA) regime will assess their entry to monthly instalments using a modified turnover test, based on their gross TOFA income rather than their net TOFA income.
Source: Budget Paper No 2 [pp 26-27]
[WTB 20, 14/5/13]