• Restructure of government organisations

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

    This information only applies to government organisations.

    When a government organisation undergoes a restructure, merger or change of name at short notice, it's often difficult to change systems to quickly reflect this new structure.

    In circumstances where staff have moved between entities, and continue to perform essentially the same role, the following guidelines apply if no reportable fringe benefits are involved:

    • Tax file number, withholding declarations and withholding variations don't 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.

    Reportable fringe benefit amounts should be shown on payment summaries from the entity that reported them. However, if this isn't practical, the total value of reportable fringe benefits can be disclosed in a single payment summary, along with the full year’s wages and tax withheld, subject to the correct application of two thresholds relevant to both employing entities.

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

    See also:

      Last modified: 14 Jul 2016QC 25432