From 1 July 2015, some business owners will have their pay as you go (PAYG) withholding cycles changed.

The cycle change is based on the amount you withheld under your Australian business number (ABN) in all branches during the 2013-14 Financial Year. If you withheld between $25,000 and $1 million, you will need to report and pay monthly. If the amount was more than $1 million, you will need to report and pay electronically according to the set payment dates for large withholders.

Those businesses affected will soon receive a letter from the ATO advising them of the change, and what to do if they want to remain on their current cycle.

You (or your accountant) can request to remain on an existing cycle if your estimates for the 2015-16 Financial Year are lower than the new thresholds. Any request to remain on an existing cycle must be sent to the ATO in writing within 14 days to:

Australian Taxation Office
PO Box 3575
ALBURY NSW 2640

For more information

You can find out more about changes to PAYG withholding cycles on the ATO website ato.gov.au by searching for ’cycle changes’ or ’large withholders’, or by calling 13 72 86 (Fast Key Code 1 1 3).

Business Wise
The team at Business Wise don't just do bookkeeping and accounting - we believe that successful businesses are those that are informed, proactive and open to change, and we want to help you on your journey to success.