PAYG withholding information for government organisations

This information will assist government organisations to meet their pay as you go (PAYG) withholding obligations as a result of a restructure, merge or change of name.

This information only applies to government organisations.

When a government organisation undergoes a restructure, merge or change of name at short notice, it is often difficult to change systems to quickly reflect this new structure, for example, payroll.

In these circumstances where staff have moved between entities and continue to perform essentially the same role, the following guidelines apply:

• Tax file number, withholding declarations and withholding variations do not need to be renewed and remain valid with the new employing entity.
• Payment summaries and annual reports may be prepared for the first year by either
• the new employing entity, covering all payments for the year
• the old entity, covering all payments for the year
• separately by both old and new entities, covering payments made by each.

Our expectation is correct systems and reporting will be put in place for the following income year.

For more information, refer to: Pay as you go (PAYG) withholding - home GST and machinery of government changes (NAT 73389) GST and machinery of government - frequently asked questions (NAT 73995).