ATO Changes 2014

CHANGES TO MANAGING ACTIVITY STATEMENTS

From 1 July 2014, if you or your tax agent lodges your activity statement via an electronic channel, you will no longer receive a paper activity statement for the next reporting period instead, it will become available in an electronic channel.

CHANGES TO PAYG WITHHOLDING ANNUAL REPORTING

Do you lodge your PAYG withholding annual report using disks or USB flash drives? If so, you will need to lodge your annual report online using the file transfer facility on the Business Portal at the ATO website or use Standard Business Reporting (SBR) enabled accounting or payroll software. To use the online services, you need an AUSkey.

PAYG INSTALMENTS THRESHOLD INCREASES

The Small Business Minister has announced changes to the pay as you go (PAYG) instalments entry and exit thresholds. From 1 July 2014, PAYG instalment thresholds will increase, which may mean you no longer need to pay instalments.

The entry and exit thresholds for:

• business or investment income will increase from $2,000 to $4,000;
• adjusted balance of assessment will increase from $500 to $1,000;
• notional tax will increase from $250 to $500.

There will no longer be a requirement for entities registered for GST to remain in the system if they have a zero instalment rate. If you no longer meet the entry rules you will be automatically exited from the PAYG instalments system. The ATO will send you a letter to notify you of your automatic withdrawal.

If you have received a recent activity statement you will be required to make payment by the due date, as this is for the quarter from 1 March 2014 to 30 June 2014. If you want to continue to pay instalments towards the end of year tax liability, you can voluntarily re-enter the PAYG instalment system. You can phone the ATO on 13 72 86 (Fast Key Code 2 1 1) and request you are manually entered to the PAYG instalment system.

For further information on any of the above please refer to the ATO website.

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