Assistant Treasurer, Minister Assisting for Financial Services & Superannuation and Minister for Competition Policy & Consumer Affairs
5 March 2012 - 18 September 2013
Draft materials released for PAYG changes
Assistant Treasurer David Bradbury has today released exposure draft legislation and explanatory materials for consultation on changes to the Pay As You Go (PAYG) system.
The draft legislation will require large corporates to pay their tax instalments monthly rather than quarterly, as announced in the 2012-13 Mid-Year Economic and Financial Outlook (MYEFO).
This reform will make the tax system more responsive, efficient, and consistent by better matching tax collections with the economic conditions faced by business. It will also better align the timing of company tax instalments for many corporates with their GST payments.
"This change continues the reform of the company tax instalment system that began in the late 1980s and complements other initiatives the Government has announced to address timing disparities in the tax system," said Mr Bradbury.
"In response to the February 2013 consultation paper, submissions identified a number of longer term reforms that would improve the PAYG instalment system.
"I have asked Treasury and the ATO to work with interested parties to consider these longer term issues in detail."
Following targeted consultation, Treasury will release a proposals paper later this year.
The Government anticipates that these reforms will be legislated before the second phase of this reform commences on 1 January 2015.
Consultation on the exposure draft will close on 15 April 2013. I encourage all interested parties to participate in the consultation process.
A copy of the exposure draft may be found at: www.treasury.gov.au.
25 March 2013