Monthly PAYGW from July
The ATO have confirmed that many small businesses will be required to pay the tax withheld from employees wages Monthly instead of Quarterly from 1 July 2025.
Small Businesses with annual PAYGW withholdings over $25,000pa, which includes many small family business payrolls, will be required to report PAYGW on their activity statement and pay it to the ATO Monthly.
If you have a larger business with an annual PAYGW amount of more than $1 million you will be required to pay electronically within six to eight days from the day the staff were paid.
We will write to you in April if your PAYG withholding cycle is going to change.
Australian Taxation Office
Keep an eye out for the ATO letter as there are time limits to request changes. Additional details are available on the ATO website here.
Don’t Want To Change?
Small businesses owners can request to stay on a Quarterly PAYGW payments IF their PAYG withholdings will be less than $25,000 for the year.
A request to remain on a lower withholding cycle form must be sent within 21 days from the date of the ATO letter. The request must include details of the reason(s) for your request and the estimated amount of PAYGW withholding for next year.
Requests to remain on Quarterly payments will be reviewed by the ATO on a case by case basis. If your request to remain on Quarterly payments is refused a formal Objection may be lodged.
Next Steps
Contact Alan Beck at Beck Partners if you need assistance to make an ATO Request or Objection.
Find out more about Beck Partners , Who We Are and What We Do at our website and feel free to contact info@beckpartners.com.au if we can be of any assistance.
