Icon

How to apply for the Pay As You Go program in Australia in 2024?

Work
Popular
Employment
Australia
How to apply for the Pay As You Go program in Australia in 2024?

The Pay As You Go program is a taxation system that allows you to pay income taxes gradually throughout the year, not just at the end of the financial year. Find out more about the procedure for registering for the PAYG program in Australia in 2024

Order a consultation with a migration specialist to avoid unpleasant situations during the move
Order a consultation with a migration specialist to avoid unpleasant situations during the move
Buy


In some cases, you must withhold tax from payments you make to employees, certain contractors, or companies that do not provide their Australian Business Number (ABN). PAYG (Pay As You Go) withholding involves deducting tax from certain payments and paying it to the Australian Taxation Office. This helps employees reduce the amount of tax they have to pay at the end of the financial year.


The main purpose of the Pay As You Go program


The Pay As You Go (PAYG) program in Australia is a taxation system that allows you to spread your tax liability over the course of the year rather than paying the total tax at the end of the financial year. It has the following main components?

1. PAYG Withholding: a system whereby employers deduct and withhold taxes from their employees' salaries and remit them to the Australian Taxation Office (ATO). This helps employees avoid a large tax debt at the end of the year;

2. PAYG Instalments: a system for self-employed individuals and businesses to pay taxes based on pre-determined portions of their expected tax liability. This allows taxpayers to spread their tax liabilities over the course of the year;

3. PAYG Income Tax: tax liabilities for individuals and businesses that pay taxes based on income and expense reporting.


The main purpose of the PAYG program is to ensure regular tax payments to avoid large tax charges at the end of the financial year and to provide the state with stable revenues.


When do I need to withhold tax?


Generally, you need to withhold tax from payments made to your employees, directors, companies that do not disclose their tax identification number (ABN), and contractors who request a voluntary agreement. Detailed information on which payments are subject to withholding can be found on the Australian Taxation Office website.

If you are a sole proprietor or partnership, the money you take from your business for personal use is not considered wages. You do not need to withhold tax from such income. However, you can pay tax throughout the year through PAYG payments. This method helps to evenly distribute tax liabilities and avoid large payments at the end of the year.




Planning a trip or move abroad? An important part of a successful trip is an insurance policy, as it guarantees high-quality medical care anywhere in the world and can protect you from unnecessary expenses while travelling.  You can buy insurance from trusted agents on the Visit World portal. 




How do I register for the Pay As You Go program?


To withhold tax under the PAYG (Pay As You Go) scheme, you need to register before the first payment from which you plan to withhold tax. You can do this online through the Business Registration Service or have your tax agent or Business Activity Service (BAS) do it for you. Use the same form to register other taxes at the same time.

After registration, you need to determine the amount of tax you will withhold. Use the withholding tax calculator and tax tables on the Australian Taxation Office (ATO) website to help you do this. This will help you calculate the tax accurately and ensure that you pay your tax liabilities correctly.


Paying tax and filing reports


The time to pay tax and submit a report to the Australian Taxation Office (ATO) depends on the amount of tax withheld. If you withhold $25,000 or less per year, you must pay the tax quarterly and report it in your business reports. 

If the amount of tax withheld is between $25,001 and $1 million per year, you must pay the tax monthly and report it on your business activity report. You can check the exact payment and reporting deadlines on the ATO website to avoid penalties and ensure compliance with your tax obligations.


Annual reports and payment summaries


If you have reported your payments through Single Touch Payroll (STP), you do not need to file an annual report or payroll summary. Learn more about STP on the ATO website. For payments that were not reported through STP, you must provide employees with information about the payments by July 14, and submit an annual report to the ATO by August 14.


We remind you! Saudi Arabia opens its doors to qualified expats and simplifies the visa application procedure. Read more about what will change in the country's migration legislation in 2024 and how the new rules will affect employees.






Igor Usyk - Head of Legal Department at Visit World


For safe relocation to Australia, obtaining refugee status and employment, use the advice of an international lawyer.

We help to solve complex and simple issues for your comfort and safety in Australia.





Products from Visit World for a comfortable trip:


Checklist for obtaining a visa and necessary documents in Australia;

Legal advice on immigration to Australia;

Travel insurance for foreigners in Australia;

Medical insurance all over the world.




Recommended articles

3 min

Work Work visa in Australia 2024: basic requirements, necessary documents and other important details

Work visa in Australia 2024: basic requirements, necessary documents and other important details

Australia has a fairly high standard of living and career prospects. That is why this country attracts tens of thousands of migrants from all over the world every year. There is really no shortage of labor here - there is a job for everyone in Australia. Learn more about the procedure for obtaining a work visa in Australia

15 Jul. 2024

More details

3 min

Treatment Healthcare system in Australia in 2024: insurance, medical services and other important details

Healthcare system in Australia in 2024: insurance, medical services and other important details

Undoubtedly, Australia is one of the key players in the medical tourism industry. The country is famous for its developed healthcare infrastructure, modern medical facilities and qualified specialists. Learn more about the peculiarities of the medical system in Australia

22 Jul. 2024

More details

2 min

Expats Australian government launches working holiday visa lottery: important details

Australian government launches working holiday visa lottery: important details

Citizens of Vietnam, China, and India will be able to participate in a lottery to obtain a work visa to Australia in the next financial year. This innovation should simplify the visa application process for citizens of these countries, as well as strengthen control over migration processes. Learn more about the Australian work visa lottery

23 May. 2024

More details

2 min

Education Increase in fees for international student visas in Australia: what is known

Increase in fees for international student visas in Australia: what is known

The Australian government has decided to increase fees for international student visas by 125%. This innovation should reduce the record high levels of migration. Learn more about the cost of a student visa in Australia

10 Jul. 2024

More details