23FNon-electronic group of employers

1. An employer is included in the non-electronic group if the employer—

2. meets either of the requirements set out in subsection (5) or has an exemption under section 23G; and
3. does not deliver their employment income information electronically, whether through a service or platform provided by the Commissioner or through the use of payroll software; and
4. is not included in the new group.

5. An employer in the non-electronic group must deliver their employment income information for a payday—

6. in a format prescribed by the Commissioner; and
7. within 10 working days after payday.

8. For the purposes of subsection (2)(b), an employer in the non-electronic group may choose to treat the payday as—

9. the day on which the employer makes a PAYE income payment to an employee; or
10. 1 of the following, as applicable:
    1. for an amount paid or benefit provided in the period that starts on the 1st day of a month and ends on the 15th day of the month, the 15th of the month; and
    2. for an amount paid or benefit provided in the period that starts on the 16th day of the month and ends on the last day of the month, the last day of the month.

11. An employer who chooses to use, as a payday, a day referred to in subsection (3)(b)(i) or (ii), must deliver the employment income information set out in schedule 4, table 1, rows 4 to 6 for each payment made or benefit provided in the relevant period.

12. The requirements are that, for a tax year and an amount of tax for a PAYE income payment and an employer’s superannuation cash contribution,—

13. an employer other than an employer referred to in paragraph (b), must have gross amounts of tax payable for the preceding tax year that are below the threshold amount:
14. a new employer must have total accumulated amounts of tax that are below the threshold amount.

15. The threshold amount referred to in subsection (5) is—

16. $50,000; or
17. the amount set by the Governor-General by Order in Council under subsection (8).

18. If the accumulated amount referred to in subsection (5)(b) reaches the threshold amount during a tax year, the employer is included in the new group for the remaining months of the 6-month period referred to in section 23H(2) and, following that period, is included in the online group of employers.

19. The Governor-General may, on the recommendation of the Minister of Revenue, make an Order in Council setting or amending the threshold amount referred to in subsection (6)(b). Before making the recommendation, the Minister must undertake consultation on the proposed amendment that is appropriate and reasonable for the purposes of this section.