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Restructure of government organisations

How government organisations restructuring, merging, or changing their name can meet their PAYG withholding obligations.

Last updated 4 April 2017

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.

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

  • 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
    • the new employing entity, covering all payments for the year
    • the old entity, covering all payments for the year, or
    • 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 shown on a single payment summary subject to the correct application of the two thresholds relevant to both employing entities. In this instance, the payment summary should also report the full year’s wages and tax withheld.

Correct systems and reporting needs to be put in place for the following income year.

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