The Australian Taxation Office (ATO) will revise PAYG withholding cycles from 1 July 2026, requiring affected employers, including those that operate international companies, to adjust reporting and payment obligations.
The ATO reviews employer withholding annually and will notify businesses in April if their cycle changes based on total withholding amounts across all branches.
Businesses in Australia with annual withholding between $25,000 and $1 million will move to monthly reporting and payments via activity statements. Those exceeding $1 million will be classified as large withholders and must pay electronically within six to eight days of withholding, typically aligned with payroll dates.
Large withholders will receive a unique Payment Reference Number and must ensure payments match amounts reported through Single Touch Payroll, removing the need to report PAYG withholding on activity statements.
Employers with a revised status must update payroll systems before 1 July 2026 to meet new deadlines.
Businesses expecting their 2026-2027 withholding to fall below thresholds may request to remain on a lower cycle within 21 days of receiving the ATO notice, providing reasons and estimated figures.
Last updated: 14th Apr 2026
About the Author
Ro Elvinia is ABN Australia's Customer Success and Marketing Manager. She holds a bachelor’s degree in mass communication, majoring in journalism, and also has an academic background in civil engineering. With over a decade of experience in professional writing and a background spanning journalism, Australian immigration, and business services, Ro brings a unique mix of communication and analytical expertise. She works closely with international clients and contributes to ABN Australia's content strategy, helping global businesses stay informed and confident as they navigate the Australian market.
Ro Elvinia
Customer Success and Marketing Manager