Institute of Certified Bookkeepers

ATO PAYGW Letter template

ICB has become aware that many clients of our members have had their PAYGW reporting changed from quarterly to monthly by the ATO. It appears that clients who reach the $25,000 threshold are being picked up through STP processing. Some clients are missing the notification sent to them via MyGov. ICB recommends members to check BAS portal for each client and to alert clients of any changes. ICB's Matthew Addison is folllowing up with the ATO to achieve a more effective notifcation process of these changes.

The ATO PAYG withholding team conducts an ATO annual review during April to June each year.

The purpose of the review is to:

  • identify payers who require an upgrade to their PAYG withholding cycles, and
  • advise those payers and their agents, via a bulk mail out, of the proposed upgrade and their new reporting and payment obligations.

The review includes:

  • issuing letters to the identified clients and their agents in early April (see below for sample of letter).
  • allowing sufficient time (3 months) for the clients to change to the new payment cycle before their first payment is due for the new financial year.
  • allowing the clients the opportunity to request to stay on their existing cycles.
  • upgrading the clients’ withholding cycles in late June with an effective date as 1 July.
  • 20th August 2019