Frequently asked questions

What are 'other payments' at W1 and W2?

Other payments include commissions, director's fees, compensation, sickness and accident payments and a range of other payments from which you are required to withhold amounts at a rate shown in the ATO's published tax tables.

Where do I report amounts withheld from payments to foreign residents?

If you withhold amounts from interest, dividends or royalty payments to foreign residents it should be included at W3.

What is a voluntary agreement?

PAYG voluntary agreements enable businesses to withhold amounts from payments they make to contractors and other individual service providers. This helps workers provide for their income tax liability.

For more information about voluntary agreements, refer to PAYG withholding - voluntary agreements.

If I enter into a voluntary agreement, where do I report amounts paid on my activity statement?

Include the voluntary payment amounts at W1. W1 reflects your total payments, including amounts you withheld and the amounts received by your workers (or other recipients). You then report the amount withheld from the payments at W2.

I am not registered for PAYG withholding. How do I send in the amounts that I have to withhold?

If you are required to withhold amounts from payments made to others, you will need to register for PAYG withholding. Phone us on 13 28 66 to register.

Can I make a voluntary payment?

Yes, but you do not make voluntary payments on your activity statement. If you have an electronic funds transfer (EFT) code, you can make a voluntary payment by BPAY, credit card or by direct credit. If you do not have an EFT code, phone us on 1800 815 886 for help.

Alternatively, you can mail your payment to:

Australian Taxation Office
Locked Bag 1936

It is very important that you include the following information with your voluntary payment:

  • the payment type, for example, PAYG withholding payment
  • your ABN or tax file number
  • your full name and address (as shown on the front of your activity statement)
  • a contact phone number, including the area code.

What if I make a mistake?

You can correct a mistake by striking it out in black pen. Write the new information as close as possible to the boxes for the label. You can also use tape whiteout to correct errors. Do not use liquid whiteout - this causes problems with scanning which will delay the processing of your activity statement.

What if I only realised the mistake after lodging my activity statement?

To correct a mistake in the PAYG withholding amounts you reported on your activity statement refer to PAYG withholding | correct a mistake or amend a return.

How do I update my address?

To ensure you receive the correct mail for each of your tax obligations in a timely manner, we encourage you to ensure we have your correct address.

To update your address for receiving activity statements, you can phone us on 13 28 66 or log on to the Business Portal.

To register for the Business Portal, or for more information, visit online services or phone us on 13 28 66.

    Last modified: 12 Oct 2015QC 16735