The Australian Taxation Office (ATO) has changed the Pay-As-You-Go (PAYG) withholding variation process for foreign employers with employees working in Australia, with effect from July 1, 2014. The ATO is currently notifying foreign employers and their tax agents that all existing PAYG variation arrangements will cease on June 30, 2014. A new application will need to be lodged with the ATO for the variation to continue beyond June 30, 2014. Each application will be valid for two years. A key new additional requirement is that the Australian Tax File Number (TFN) of each relevant employee must be provided for all new applications. Employers should now be undertaking a review of employees who remain on home country payrolls while on assignment to Australia to determine what changes may need to be made in advance of the July 1, 2014 start date.