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The Australian Taxation Office (ATO) has confirmed that PAYG (pay as you go) payments that fall due on a non-business day must be paid by that day. In other words, make sure the ATO receives it the previous business day. The Acts Interpretation Act has resulted in the long-standing lodgment and payment practice of payments being received the next working day, but the ATO has clarified that the legislation introducing PAYG negates the effect of this Act. The New Tax System Act states: "If the day for payment falls on a weekend or a holiday, the payment must still be made by that day. Subsection 36(2) of the Acts Interpretation Act 1901 does not apply to extend the due date to the next working day." The ATO has told the Institute of Chartered Accountants Australia that a transitional period of about 12 months will be in place and penalties will not be imposed on late payments during this time. This decision means businesses lodging their own payments and statements, and all tax agents, must be prepared for lodgment earlier than the 21st, in case that day is a Saturday, Sunday or public holiday.