In an unexpected announcement, the Government has now made it a requirement for all large entities in the PAYG instalment system to make monthly PAYG income tax instalments. The monthly PAYG instalment system will therefore be extended to include trusts, superannuation funds, sole traders and large investors.
The system will be phased in between 1 January 2014 and 1 January 2017 and will come into force as follows:
- Corporate tax Entity with a turnover over $1 billion: 1 January 2014
- Corporate tax entity with turnover over $100 million: 1 January 2015
- Corporate tax entity with a turnover over $20 million and other PAYG entities with a turnover over $1 billion: 1 January 2016
- Other PAYG entities with a turnover $20 billion: 1 January 2017.