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belliab(Initiate)Initiate
30 Jan 2026

Currently we operate business through a Discretionary Trust taking distributions each FY


We were advised that we need to become employees and start on a payroll


As it is half way through the FY now are we able to set up the payroll now or have to wait until start of new FY


Also if we do set up payroll and have PAYG tax withheld how do we go about adjusting our existing individial PAYG instalments we are paying now each quarter to ATO as the payroll will be doing PAYG withholding


Thanks for your assistance

48 views
7 replies
48 views
7 replies

All replies

KaraATO(Community Support)Community Support
3 Feb 2026

Hi @belliab,


You can set up payroll anytime during the financial year – no need to wait until the new financial year. Once you start paying wages through your business, the trust (as your employer) will need to:

If your circumstances change, you can vary your individual PAYG instalments. Since tax will now be withheld from your wages, you might need to lower your instalments. You can do this by logging into your ATO online account via myGov or through your tax agent. Be careful not to set instalments too low, as you could face interest charges if you owe tax later.


It might be best to speak with a registered tax agent. They can guide you through setting up payroll and adjusting your instalments.

belliab(Initiate)Initiate
11 Feb 2026

Thank you for your response. Hoping you may be able to assist with the following

Where in the Trust Tax Return do we enter employee wages (what item numbers). I can work out where to enter superannuation expenses (Item 5 - Superannuation Expenses) but not employee wages?


Thanks

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