Withholding from payments to foreign residents for construction and related activities

Report and pay withheld amounts to us

When and how you report and pay amounts to us depends on whether you are a small, medium or large withholder.

To determine whether you are a small, medium or large withholder, we look at how much your total withholding is, or is likely to be, each year. If you are unsure of your status, phone 13 28 66 between 8.00am and 6.00pm Monday to Friday and we can confirm it for you.

Small withholders

Small withholders withhold $25,000 or less a year. They report and pay withheld amounts quarterly. As a small withholder, you report and pay amounts to us using an activity statement. We mail an activity statement to you each quarter, detailing when your payment is due. You report all PAYG withholding amounts at the applicable W labels. You show the amount withheld from foreign residents at label W3 on your activity statement.

If you withheld amounts because a foreign resident did not quote their ABN, show these amounts separately at label W4 on your activity statement.

Medium withholders

Medium withholders withhold between $25,001 and $1 million a year. They report and pay withheld amounts monthly. As a medium withholder, you report and pay amounts to us using an activity statement. We mail an activity statement to you each month, detailing when your payment is due. You report all PAYG withholding amounts at the applicable W labels. You show the amount withheld from foreign residents at label W3 on your activity statement.

If you withheld amounts because a foreign resident did not quote their ABN, show these amounts separately at label W4 on your activity statement.

For more information, refer to PAYG withholding - how to complete your activity statement (NAT 7394).

Large withholders

Large withholders withhold more than $1 million a year. They must pay withheld amounts electronically to us.

If you're already registered as a large withholder, continue to follow the existing procedures as for all your other PAYG withholding obligations.

If you're not registered and expect to withhold amounts of more than $1 million a year, refer to PAYG withholding for large withholders (NAT 3301) for details on the reporting and payment obligations of large withholders.

Sections within Your obligations as a payer

• Register for PAYG withholding
• Withhold amounts from payments
• Report and pay withheld amounts to us
• How to pay the amounts you withhold to us
• Provide payment summaries to payees and report annually to us
• Reporting amounts withheld where an ABN was not quoted