ATO’s Activity Statement Lodgment Reminder Pilot 101

ATOs Activity Statement Lodgment Reminder Pilot 101

A lodgment reminder pilot program has been announced by the ATO, for 3,000 randomly selected employers - PAYG withholding amounts reported by them via STP will automatically become payable as at due date even if no activity statement is lodged.

From July 2023, the ATO is running an activity statement lodgment reminder pilot for 3,000 randomly selected employers.

Your business may be selected for ATO’s PAYG withholding compliance test

From 1 July 2023, the ATO commenced an activity statement lodgment reminder program wherein 3,000 employers will be randomly selected for a compliance test. Even if they don’t lodge their activity statements in or on time, the PAYG withholding amounts reported through STP will be automatically added to their integrated client account balance when they become due and payable.

This program will be run by the ATO throughout the 2023–24 income year.If selected, the first activity statement the ATO will send a reminder for will be in:

- July 2023 for monthly PAYG withholders
- September 2023 for quarterly PAYG withholders.

What happens if you get randomly selected for ATO's lodgment reminder pilot program?

If selected for the pilot, you will receive a reminder to lodge your activity statement if:

- the activity statement remains outstanding for at least 7 days after the lodgment due date
- PAYG withholding has been reported via STP for the period.

The ATO will also send, via correspondence, a summary of amounts that may be payable by you as at due date, including:

- PAYG withholding amounts reported through STP
- any pre-filled:
-- PAYG instalment amounts
-- GST instalment amounts.

Confirm what's on ATO's records

You will be required to check that the PAYG withholding amounts pre-filled by the ATO are correct and complete. If you don't lodge your activity statement by the date stated in your reminder letter:

- The ATO will consider you have no corrections to report to amounts it has on record.
- Amounts on record will be added to your integrated client account because they are due and payable.
- The ATO may also finalise your activity statement and consider it lodged or it may remain outstanding. This will depend on whether you report any other amounts in your activity statement.

Other matters on ATO's lodgment reminder pilot

If you need to report any additional obligations, your activity statement will remain outstanding and overdue; however, amounts that the ATO has on record will be added to your integrated client account balance and become payable on due date (general interest charges may also apply).If you identify any late corrections for the amounts reported through STP, you can remedy this by:

- amending an already lodged activity statement, or
- editing the PAYG withholding amounts in the activity statement, if not already lodged.

Next steps if you're selected for the ATO's lodgment reminder pilot program

If you get randomly selected for this lodgment reminder pilot, we, as your tax agent, will also be notified. We will reach out to you and guide you through any queries that you may have regarding this matter.

Please provide us all the necessary information promptly after 30 September 2023 so that we can prepare your activity statement well before the lodgement and payment due date.

Should you have any other queries, please feel free to contact us.

Related link: Lodgment reminder pilot | ato.gov.au

Acro Accounting & Financial Planning (AAFP) offers a one stop solution right from accounting, taxation, financial planning to other business advisory services. As Certified Practicing Accountants (CPA’s) and professional tax advisors, we pride ourselves on being experts with the latest developments relating to business and taxation. We as professional public practice firm, provide high quality taxation and business advice to our clients through a personalised service at competitive rates.

Related Articles

5 Proven Steps To Start Your Business Tech Transformation
Upgrade and innovate to stay ahead in the competitive landscape with these 5 essential steps to kickstart your business tech transformation.
Profit or cashflow | Understand your Business Finances
Worried about your cashflow and the profitability of your business? Come and talk to us. We’ll review your finances and will highlight key ways to improve your cash position while keeping the profits rolling in.
Is it Worth Using a Financial Advisor?
Discover if using a financial advisor is worth it by exploring their value in optimising finances, planning for retirement, and achieving financial goals.
Tax tips for self-managed superannuation funds
Are you spending too much time on SMSF management? It’s not easy to get all the details right, especially if your fund has changed operations over time.