From July 2023, we’re running an activity statement lodgment reminder pilot for 3,000 randomly selected employers.
How the pilot works
We are introducing a new lodgment reminder for employers to ensure that even if you don't lodge your activity statement, the PAYG withholding amounts you reported through STP will be added to your integrated client account when they become due and payable, along with any pre-filled GST instalment amounts or PAYG instalment amounts.
We will pilot this lodgment reminder with 3,000 randomly selected employers in the 2023–24 financial year.
If selected for the pilot, you will receive a reminder if you haven't lodged your activity statement and:
- it's considered late (remains outstanding at least 7 days after the due date)
- PAYG withholding has been reported via Single Touch Payroll (STP) for the period
- you report PAYG withholding either monthly or quarterly in your activity statement.
If you are selected for the pilot, the first activity statement we'll remind you about (if late) will be:
- July 2023 for monthly PAYG withholders
- September 2023 for quarterly PAYG withholders.
Reminder when you haven't lodged
If you are selected for the pilot and you have not lodged your activity statement, we will send you a reminder letter. We will send this correspondence in accordance with your communication preference – for example, your registered agent, myGov Inbox or other preferred address.
The reminder will include a summary of amounts we have on record for your activity statement. Amounts we have on record include:
- PAYG withholding amounts reported through STP
- any pre-filled
- PAYG instalment amounts
- GST instalment amounts.
We will ask you to check that the PAYG withholding amounts we have on record are correct and complete.
Most payments made to employees that are subject to PAYG withholding are reported through STP and at labels W1 and W2 on your activity statement. However, some payments cannot be reported or are not mandatory to report through STP (see What you need to report). For example, it's not mandatory to report through STP a payment to a contractor that's covered by a voluntary agreement. You'll still need to make sure you include these amounts in your activity statement reporting.
Your reminder will provide a timeframe for you to lodge to correct any amounts and complete any other activity statement labels that apply.
If you don't lodge
If you don't lodge your activity statement by the date stated in your reminder letter:
- We will consider you have no corrections to report to amounts we have on record.
- We will add the amounts we have on record to your integrated client account because they are due and payable.
- We may also finalise your activity statement in ATO systems and consider it lodged or it may remain outstanding. This will depend on whether you must report any other amounts in your activity statement.
Activity statements we will finalise
If your activity statement includes only the following amounts, that we already have a record of, we will use these to complete and finalise your activity statement in ATO systems:
- PAYG withholding reported through STP
- where applicable, any pre-filled
- PAYG instalment amounts (amount method)
- GST instalment amounts.
If we finalise your activity statement, it is considered lodged and you should pay any amounts outstanding. You can also revise your activity statement, as you do now, if you need to fix BAS mistakes or make adjustments.
Viewing an activity statement after it is finalised
If you use ATO online services, you can view finalised activity statements in the activity statement history screen as follows:
- From the home screen, select Lodgments > Activity statements > History.
If we have finalised your activity statement, your activity statement will appear in your Activity statement history list as 'ATO finalised'.
Activity statements that will remain outstanding
If you still need to report any additional obligations, your activity statement will remain outstanding and overdue.
Amounts we have on record (such as PAYG withholding, GST instalment amount and PAYG instalment amount using the amount method) will be added to your integrated client account.
You must lodge to report any:
- GST
- PAYG instalments using the rate method
- fringe benefits tax instalments
- wine equalisation tax
- luxury car tax
- fuel tax credits.
When you lodge
If you lodge through ATO online services, we will let you know if we have already added amounts to your integrated client account for your outstanding activity statement:
- On the home screen, your outstanding activity statement will appear in the 'For action' list.
- When you view your activity statement, amounts we have already added to your integrated client account will appear as 'ATO processed'. You can edit these amounts if they need to be corrected.
When you edit an amount, you must enter the new, complete obligation (not the adjustment). Your integrated client account will be updated to reflect the correct amount.
STP corrections and late reports
There may be times when you need to correct information reported through STP or when you lodge an STP report late, after we've already added amounts to your integrated client account.
If the STP report impacts your PAYG withholding because it relates to a payment you made to an employee in the activity statement period, you may need to correct the PAYG withholding we have already added to your account.
To make a correction, if your activity statement has:
- been finalised in ATO systems, revise it to correct PAYG withholding mistakes
- not been finalised, edit the PAYG withholding amounts when you lodge.
For help on when to report a correction in STP and your activity statement, refer to Correcting information reported through STP.
Keeping your agent informed
If you have a registered agent, we will let them know that you have been selected for the pilot. We will issue a client list to agents when we select clients for the pilot.
From November 2023, agents acting on behalf of employers will be able to access an updated on-demand activity statement lodgment report in Online services for agents.
This report will show:
- which clients have been issued a reminder
- the proposed next action and timing.
Paying amounts due
You can access support options if you need help with paying.
What happens next
We will use this pilot to determine if we need to make any updates to our support processes, material or design before making any decisions to roll this out more broadly.
From July 2023, we’re running an activity statement lodgment reminder pilot for 3,000 randomly selected employers.