Under new withholding arrangements starting on 1 July 1998 eligible small businesses will have the option to remit these payments on a quarterly, rather than monthly basis. Legislation to implement the arrangements passed the Senate today.
Eligible small businesses are those with annual withholding tax obligations of $25,000 or less under the Pay-As-You-Earn (PAYE), Prescribed Payments (PPS) and Reportable Payments Systems (RPS).
This measure, announced in the 1997-98 Budget, represents a further significant reduction in compliance costs for small business and reduces the frequency of transactions between small business and the Australian Taxation Office.
The Assistant Treasurer said that this measure will provide thousands of small businesses with a cash flow windfall. More than 300,000 small businesses will be able to defer the remittance of $500 million in withheld amounts in 1998-99.
27 May 1998
Contact:
Penny Farnsworth
(02) 6277 7360
(0419) 482 497