Changes to PAYG Withholding Cycles
PAYG Withholding Cycle Changes for Some Entities
In March 2025 the ATO has informed that approximately 3,500 small businesses with a history of non-payment, late or non lodgment, or incorrect reporting will be moved from quarterly to monthly GST reporting effective from the 1 April 2025. The ATO reasons that this transition is going to help those businesses to adhere to their tax obligations because more frequent reporting is based on up-to-date accounting records. This in return may help businesses to
- Stay on top of their record-keeping due to the necessity of regular records
- Identify accounting and payment errors earlier,
- Get a timely overview and better understanding of their cashflow
Furthermore, it will reduce the burden of larger quarterly BAS payments. Hence, ATO Deputy Commissioner argued ‘when GST is reported monthly rather than quarterly, this reduces the risk of falling behind’.
Disclaimer: This article provides general information only and does not consider your individual circumstances. It is not a substitute for professional tax advice. Specific advice should be sought from a qualified tax professional before making any decisions.
Standard changes to PAYG Withholding Cycles
Please note, this transition is separate from the standard changes to PAYG Withholding cycles that occur on 1 July. As part of the annual ATO review, businesses with withholding amounts that have increased beyond specific thresholds may be moved to a more frequent withholding, reporting, and payment schedule.