The Government on Mon 25.3.2013, released for comment draft legislation and explanatory materials to implement its 2012-13 MYEFO proposal to introduce monthly PAYG instalments for large taxpayers over a 3-year period, depending on the amount of their base assessment instalment income.
In releasing the draft legislation, the Assistant Treasurer said submissions to the earlier February 2013 consultation paper on the changes identified a number of longer term reforms that would improve the PAYG instalment system and he has asked Treasury and the ATO to work with interested parties to consider those longer term issues in detail. Following “targeted consultation”, Mr Bradbury said Treasury will release a proposals paper “later this year”. In addition, he said the Government anticipated that those reforms would be legislated before the second phase of these changes is due to commence on 1 January 2015.
COMMENTS are due by 15 April 2013
Source: Assistant Treasurer’s media release No 036, 25 March 2013
[LTN 57, 25/3/13]
Extract from Treasury Website accompanying this draft
It is anticipated that this change will be implemented in three stages. Companies that meet or exceed a id=”mce_marker” billion annual turnover threshold will migrate to the new system from 1 January 2014. Companies that meet or exceed annual turnover thresholds of id=”mce_marker”00 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 id=”mce_marker”00 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.