Financial Services

PAYG Tax Reporting Requirements Policy

Further information

At the end of each financial year (the period 1 July to 30 June), a payer who has withheld tax from payments made to others must complete a payment summary for each payee and give it to the payee.

Policy statement

What happens to payment summaries

The payment summary should record the total payments made and total tax withheld, and other information.

The ATO prints payment summaries for you to use, or you may print your own in accordance with ATO specifications. Employers will receive further information about payment summaries.

The payment summary must be given to the payee by 14 July after the financial year. A payee can request a payment summary at any time during the financial year (for example, if they leave employment). However, the payer should not provide a mid-year payment summary if they provide reportable fringe benefits to the payee. This is because the reportable fringe benefits amount cannot be completed until the end of the financial year.

Tax File Number (TFN) declarations

People to whom you make certain types of payments – such as salary or wages – may give you a tax file number ("TFN") declaration.

If you have received a valid TFN declaration, you must withhold from the payee according to the rates in the tax tables, and send the TFN declaration to the ATO. If you have not received a valid TFN declaration where it is required, you must withhold at the top marginal rate plus Medicare levy (currently a total of 46.5 per cent).

When is a TFN declaration provided

If you are making payments of the following kinds the recipient may give you a TFN declaration:

  • salaries, wages, allowances, bonuses or commissions paid to an employee
  • payments to company directors
  • payments to office-holders
  • return to work payments
  • payments under a labour hire arrangement
  • pensions or annuities
  • eligible termination payments
  • payments for unused leave
  • social security or similar payments (TFN declaration mandatory)
  • Commonwealth education or training payments (TFN declaration mandatory)
  • compensation, sickness or accident payments.

To be a valid TFN declaration, all the information fields on the form must be completed.

Sending TFN declarations to the ATO

If a payer receives a TFN declaration from a payee they must complete their section and send it to the ATO within 14 days. If no TFN declaration is received, the payer must report this to the ATO within 14 days in the approved form. The report generally contains information about the payee that is known to the payer.

If a payee receives several payments from a payer (for example, if the payee is an employee on weekly or fortnightly wages) they need complete only one TFN declaration at the start of the relationship.

Annual reporting to the ATO

By 14 August after the end of each financial year, the University must provide a report to the ATO about payments from which you withheld amounts (including nil amounts) if the payments were of the following kinds:

  • salaries, wages, allowances, bonuses or commissions paid to an employee
  • payments to company directors
  • payments to office-holders
  • return to work payments
  • pensions or annuities
  • eligible termination payments
  • payments for unused leave
  • social security or similar payments
  • Commonwealth education or training payments
  • compensation, sickness or accident payments
  • payments under a voluntary agreement and
  • payments under a labour hire arrangement.

You can report on the approved form or provide copies of all payment summaries issued to payees for the financial year, together with a statement that totals all the amounts from the payment summaries.

If you were required to withhold from other types of payments (for example, payments where an ABN is not quoted), you must report in the form approved by the ATO by 31 October after the financial year's end. Contact the ATO if you need more information.