The Australian Taxation Office has revised its reporting resources for businesses making interest, dividend, and royalty payments to non-residents, with the 31 October lodgment deadline less than two months away.
The Australian Taxation Office has announced updated guidance on PAYG withholding annual reports for interest, dividend, and royalty payments made to non-residents on 11 September 2026. The move follows the creation of a new completion guide designed to simplify the lodgment process for affected businesses.
Key reporting obligations
Businesses must file the PAYG withholding annual report by 31 October each year. This deadline applies regardless of any substituted income tax period. The report covers interest payments and unfranked dividends not included on an annual investment income report, as well as royalty payments to overseas recipients.
The reporting period runs from 1 July to 30 June. Businesses can lodge the report online through Online services for business or Online services for agents, or submit a paper form. The update applies to reports for the 1 July 2025 to 30 June 2026 reporting year.
What the new guidance covers
The ATO’s completion guide provides step-by-step instructions for preparing and submitting the report. The guide clarifies when lodgment is required and explains how to use the online template. Businesses must also pay any withholding tax owing unless a withholding exemption or tax treaty relief applies.
Action required
With fewer than two months remaining before the 31 October deadline, the ATO advises businesses to review their withholding tax obligations immediately. Any outstanding reports should be lodged and overdue withholding tax remitted.
Businesses that fail to lodge on time may face failure-to-lodge penalties.
