PAYG withholding for large withholders
We will advise you if you are a large withholder and tell you when that status takes effect. Generally you are a large withholder if you either:
- have withheld amounts totalling more than $1 million in a previous income year
- are part of a company group that has withheld more than $1 million in a past income year.
Large withholders must pay the amounts they withhold to us electronically.
You must withhold amounts from any of the following payments you make:
- salary, wages and other payments
- payments you make under a labour hire arrangement
- personal services attributed income
- payments you make under a voluntary agreement
- amounts you pay to a supplier who does not quote their Australian business number (ABN)
- investment income you pay to someone who does not provide their tax file number (TFN)
- dividends, interest and royalties you pay to non-residents of Australia
- payments you make to certain foreign residents for activities related to gaming, entertainment and sports, and construction
- super lump sums and employment termination payments
- super income streams and annuities
- super you pay to temporary residents departing Australia permanently.
Find out more
There are tax file number (TFN) withholding rules for trustees and beneficiaries of closely held trusts (this includes a family trust).
Where beneficiaries have not provided a TFN the trustee will need to withhold from certain types of payments, at the top rate of tax. These withholding rules apply to most beneficiaries.
For more information, refer to TFN withholding for closely held trusts.
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You do not have to withhold amounts from payments you make if those payments are not taxable income for the payee. For example:
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- super lump sum and income stream payments made from a taxed source to payees who are over 60
- a super income stream death benefit for a deceased person who is 60 and over, paid to a dependant
- a super lump sum death benefit for a deceased person who is 60 and over paid to a dependant.
Work it out
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