The ATO has made a determination (registered on Thur 7.11.2013) which provides certain monthly PAYG instalment payers with an additional and simplified method of working out the amount of monthly instalment liabilities in accordance with the Taxation Administration Act 1953.
The ATO noted that during consultation of the proposed changes to introduce monthly PAYG instalments for large entities, concerns were raised suggesting that due to difficulties in calculating instalment income monthly, a simpler method should be developed. The ATO said most of the submissions to the consultations on the discussion paper and draft legislation suggested that an amount be paid in each of the first 2 months based on one third of the previous quarter’s liability or instalment income with a wash-up payment in the third month. During August and October 2013, the ATO undertook further consultations with industry before finalising the method in the determination.
The Determination commences on Fri 8.11.2013.
[LTN 217, 8/11/13]
Replacement determination
The ATO has made a determination (registered on Thur 14.11.2013) which provides certain monthly PAYG instalment payers with an additional and simplified method of working out their monthly instalment in accordance with the Taxation Administration Act 1953. The determination revokes the previous determination (registered on 7 November 2013 – see above). The ATO says the “original instrument and explanatory statement contained an incorrect reference to instalment quarter and the commencement date did not align with the effective date of the principal legislation”. The revised determination commences on 1 January 2014.
[LTN 222, 15/11/13]