• Prepare activity statement - pay as you go (PAYG) withholding

    This section is used to report your monthly or quarterly PAYG withholding obligation. This is the total salary, wages and other payments you have paid as well as amounts of tax you withheld.

    Do not include any decimal point or cent amounts - round these values down to the nearest whole dollar amount. For example, instead of entering $124.75 you would enter $124 only.

    Large withholders can get information on what and when to report here.

     For information on completing this section, select from the options below:

    Screen fields

     W1 Total salary, wages and other payments 

    Enter the gross payments (total payments before any amounts are withheld) from which you are usually required to withhold tax.

    Payments could include: 

    • payments to employees for example, salary, wages, allowances and bonuses
    • payments made by a labour hire firm to individual workers under a labour hire arrangement
    • specified payments such as payments to performing artists
    • payments to religious practitioners
    • payments made under voluntary agreement
    • gross attributed personal services income for an individual.

    Make sure you include in W1 all amounts paid even if no tax was withheld because the payments were under the minimum threshold. The published tax tables set out the payment thresholds for withholding and the withholding rates.

    For more information see W1 – Total salary, wages and other payments.

    You must not include the following amounts at W1:

    • superannuation contributions
    • departing Australia superannuation payments
    • payments from which you withheld an amount because an Australian business number (ABN) was not quoted (report this at W4)
    • an investment distribution from which you withheld an amount for non-quotation of a tax file number (TFN) (report this at W3), or
    • interest, dividends or royalty payments from which you withheld an amount for a payment to a non-resident (report this at W3).

    W2 Amount withheld from payments shown at W1 

    Enter the total amount you withheld from any payments shown at W1.

    For more information see W2 – Amounts withheld from salaries or wages and other payments shown at W1.

    W4 Amount withheld where no ABN is quoted

    Enter the amounts withheld from payments made to entities (including individuals) that are conducting business transactions and have not provided an ABN on an invoice.

    If you did not withhold any amount leave this field blank.

    For more information see W4 – Amounts withheld where no ABN is quoted.

    W3 Other amounts withheld (excluding amounts at W2 or W4) 

    Enter the total amount you withheld from:

    • an investment distribution such as interest, dividends, or unit trust distributions where the payment was made to an entity (includes a non-resident) which did not provide or was not deemed to have quoted a TFN
    • interest, dividends or royalty payments made to a non-resident
    • departing Australia superannuation payments.

    If you did not withhold any amounts leave this field blank.

    For more information see W3 – Other amounts withheld.

    Screen buttons

    Cancel

    Selecting Cancel will return you to the Activity statement list screen. If you choose this option all of the data you have entered will be lost.

    Save and continue

    Selecting Continue/Save and continue will save the details you have entered for this activity statement and returns you to the Prepare activity statement screen. The amount will be transferred to 4 on the activity statement.


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Some of the advice and guidance on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our advice and guidance does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.

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