Treasury has recently conducted public consultation on its proposal to change the timing of payment of PAYG instalments by large companies from quarterly to monthly. If the proposed changes are implemented, large companies will need to ensure that they have the necessary systems in place to pay monthly instalments by the start dates (which are proposed to be staggered from 1 January 2014, depending on the turnover of the company). We will continue to monitor the progress of these reforms.
Treasury has released a consultation paper on the proposal to better align the timing of Pay As You Go (PAYG) instalments for large companies with their actual economic activity, and with their GST payments.
The total tax paid by companies will not change but from 1 January 2014, companies with turnover of $1 billion or more will need to remit their PAYG instalments monthly, rather than quarterly.
Smaller companies will have more time to prepare for the change with monthly instalments for companies with turnover of $100 million or more commencing 1 year later on 1 January 2015 and monthly instalments for companies with turnover of $20 million or more commencing 2 years later on 1 January 2016.
Submissions on the paper closed on 13 March 2013.