Payg

[HotRod]

Looks like investors and business need to do these monthly no quarterly now.

A bit of a pain, but I guess it'll stop tax getting spent before it gets paid.

 

[Rixter]

Do what exactly?

 

[HotRod]

Do what exactly?

Sorry, it'll stop PAYG payers spending money each month that should be paid as tax at the end of the 3 month period.

Paying it monthly will just make most investor pay tax on the same basis as a garden variety employee who is paid monthly.

 

[jrc77]

I presume HotRod is referring to this proposed change:

http://www.ato.gov.au/taxprofessionals/content.aspx?doc=/content/00338153.htm

Seems to only affect large companies (turnover of $20m or more).

Regards,

Jason

 

[HotRod]

I presume HotRod is referring to this proposed change:

http://www.ato.gov.au/taxprofessionals/content.aspx?doc=/content/00338153.htm

Seems to only affect large companies (turnover of $20m or more).

Regards,

Jason

They did mention super funds/trusts/companies/investors on the ABC.

 

[D.T.]

Extract from the budget:

In a bid to offset the shortfall, pay-as-you-go (PAYG) income tax instalments will shift from quarterly payments to monthly and will be extended to include all large entities in the PAYG system including trusts, superannuation funds, sole traders and large investors. The government expects the measure to net $1.4 billion in tax receipts over the forward estimates period.

So if trusts and SMSF's have to do monthly returns instead of quarterly, will that make them unfeasible due to administration costs?

 

[Aaron_C]

How are sole traders 'large entities'??

 

[Ideo]

I presume HotRod is referring to this proposed change:

http://www.ato.gov.au/taxprofessionals/content.aspx?doc=/content/00338153.htm

Seems to only affect large companies (turnover of $20m or more).

Regards,

Jason

Incorrect.

It affects Medium Withholders as well, which are defined as

you were a medium withholder in June 2001
the total amount you withheld in a past financial year was more than $25,000 but not more than $1 million, or
the Tax Office has determined that you are a medium withholder.

Only small withholders (below 25k) can continue with quarterly returns.

I've got all the paperwork on my desk at the moment.

 

[HotRod]

Incorrect.

It affects Medium Withholders as well, which are defined as

you were a medium withholder in June 2001
the total amount you withheld in a past financial year was more than $25,000 but not more than $1 million, or
the Tax Office has determined that you are a medium withholder.

Only small withholders (below 25k) can continue with quarterly returns.

I've got all the paperwork on my desk at the moment.

That's how I see it.

Bit of a shame. Has been nice having the saved PAYG earning a bit of interest before it was due.

Just need to pay every month.

 

[Aaron_C]

Looks like the BAS agents will have their business quadrupled!

 

[HotRod]

Although..............

Hmmmmmmmm

and

?????????

So looks like Dazz will be the only Sole Trader round here to be taxed monthly.

 

[Ideo]

That's how I see it.

Bit of a shame. Has been nice having the saved PAYG earning a bit of interest before it was due.

Just need to pay every month.

That's basically how I see it.

It's not going to have a signifcant impact on the way I do business. Not really large enough for it to be more than a few hundred dollars, if that, on lost interest.

It's only withholding tax rather than on revenue so it's not too bad.