• Sending withheld amounts and reporting to the ATO

    How do I send the withheld amount to the ATO?

    Once you are registered as a PAYG withholder, we will send you activity statements to complete. If you are also registered for GST you will use a Business activity statement. If you are not registered for GST, you will use an Instalment activity statement.

    Activity statements have a section on PAYG withholding. For the period that the statement covers, you add up all the amounts that you have withheld from suppliers that did not quote their ABNs and record the total in the space provided at label W4. Detailed instructions are in our publication PAYG withholding – how to complete your activity statement (NAT 7394). You will receive a copy with your activity statement package.

    If you have not withheld any amounts for 'No ABN' suppliers for the period, you should leave W4 blank. When you complete the activity statement, you will have a net amount to pay us or to receive as a refund. 'No ABN' amounts withheld will be included in this net amount.

    You can lodge your activity statement by mail or through your tax agent. Business activity statements can also be lodged electronically. You can also pay electronically, by mail or at a post office.

    If you cannot pay by the due date, you still need to lodge your activity statement on time to avoid penalty for late lodgment. Contact us as soon as you are aware that you will not be able to pay.

    When do I send my activity statement to the ATO?

    The timing will be based on your total annual withholding amount, including withholding from employees, under labour hire arrangements, voluntary agreements and where suppliers have not quoted their ABN.

    Annual withholding amount

    Timing

    $25,000 or less

    Quarterly

    More than $25,000 and up to $1,000,000

    Monthly

    Over $1,000,000

    Special requirements for more frequent payments

    The activity statement sent to you will clearly show the lodgment date and when any amounts are to be paid.

    What do I need to do at the end of the financial year?

    You need to complete your annual report for PAYG withholding when you have withheld amounts from 'No ABN' suppliers. The annual report has to be sent to us by 31 October.

    The annual report will contain details for the financial year of all the amounts you have withheld where no ABN was quoted and details of all the payment summaries you have issued. A sample copy of the PAYG withholding where ABN not quoted – annual report (NAT 3448) is available. To order the form, use our online ordering service.

    You will be able to lodge your annual report by mail, electronically or through your tax agent. The report is separate from your other annual withholding report that is due on 14 August.

    If you are a business in the building and construction industry and you paid contractors for building and construction services, you may report the amounts you withheld from payments made to contractors that did not quote an ABN during the financial year in the Taxable payments annual report. Where these payments are reported in the Taxable payments annual report, they must not be included in the PAYG withholding where ABN not quoted – annual report (NAT 3448).

    If you use the Taxable payments annual report, it is due by 28 August after the end of each financial year.

      Last modified: 15 Feb 2016QC 16444