Some of you may be required to make pay as you go (PAYG) instalments monthly rather than quarterly.
Based on your last assessed income tax return, if your
adjusted base assessment instalment income meets or exceeds the
following thresholds you will need to pay monthly:
- superannuation funds, trusts and individuals $1 billion threshold
- companies $20 million threshold. Note that entities that lodge their
GST quarterly or on an annual basis, will only be required to pay
monthly if their threshold is equal to or exceeds $100 million.
On 1 October 2015 the ATO will conduct a payer requirement test to
determine who is affected. If anyone is required to change the ATO will send you a letter in October confirming they will be required
to lodge and pay monthly.
From January 2016, these taxpayers will be required to:
- make their PAYG instalments monthly rather than quarterly
- lodge and pay electronically to avoid penalties.
An additional method of reporting instalments
Where there is difficulty calculating instalment income, your clients
may use the additional method of reporting. This requires providing an
estimate of their instalment income in months one and two, with
reconciliation in month three.