The Small Business Minister has announced changes to the pay as you go (PAYG) instalments entry and exit thresholds. These changes are part of the government’s cutting red tape initiatives.
From 1 July 2014, PAYG instalment thresholds will increase, which may mean clients no longer need to pay instalments.
The entry and exit thresholds for:
- business or investment income will increase from $2,000 to $4,000
- adjusted balance of assessment will increase from $500 to $1,000
- notional tax will increase from $250 to $500.
There will no longer be a requirement for entities registered for GST to remain in the system if they have a zero instalment rate.
If clients no longer meet the entry rules they will be automatically exited from the PAYG instalments system. We will send a letter to notify of the client’s automatic withdrawal.
If clients have received a recent activity statement they will be required to make payment by the due date, as this is for the quarter from 1 March 2014 to 30 June 2014.
If clients want to continue to pay instalments towards their end of year tax liability, they can voluntarily re-enter the PAYG instalment system. Phone the ATO on 13 72 86 Fast Key Code 2 1 1 and request the client is manually entered to the PAYG instalment system.
