The federal government has released a consultation paper for its plan to change the timing of company tax payments.

The change from quarterly to monthly payments, announced in the October mid-year budget review, will create a revenue gain of $8.3 billion for the government over three years.

"This reform will make the tax system more responsive, efficient, and consistent by better matching tax collections with the economic conditions faced by business," Assistant Treasurer David Bradbury said in a statement on Thursday.

"It will also generally align the timing of company tax instalments for affected companies with their GST payments."

From January 1 2014, companies with turnover of $1 billion or more will be required to remit PAYG company tax instalments monthly.

Companies with a turnover of $100 million or more will have a further one year period to prepare for the same change, while firms with a turnover of $20 million or more will have over three years to prepare for the change, with their monthly payments starting on January 1, 2016.

"This change continues the reform of the company tax instalment system that began in the late 1980s and complements other initiatives the government has announced to address timing disparities in the tax system," Mr Bradbury said.

Consultation will close on March 13.