The Federal Government has released a consultation paper on the three-year process to reforming the timing of company tax payments by large companies.

The paper sets out the proposed implementation and design of the reforms, and outlines how to better align the timing of PAYG instalments for large companies with their actual economic activity.

“This reform will make the tax system more responsive, efficient, and consistent by better matching tax collections with the economic conditions faced by business. It will also generally align the timing of company tax instalments for affected companies with their GST payments,” Assistant Treasurer David Bradbury said.

The total tax paid by companies will not change, but from 1 January 2014 companies with turnover of $1 billion or more will be required to remit their PAYG company tax instalments monthly, not quarterly. Companies with turnover of $100 million or more will have a further one year period to prepare for this change, with monthly payments to start on 1 January 2015. Companies with turnover of $20 million or more will have over three years to prepare for the change, with monthly payments to start on 1 January 2016.

More information can be found here