• No ABN withholding

    Ask the contractor if they have an ABN. If they don't have an ABN and the total payment for the goods or services is more than $75 excluding any GST, you will have to withhold 46.5% of the payment and pay it to us. This amount is the top marginal rate plus Medicare levy.

    You need to:

    • be registered for withholding under the PAYG withholding system
    • give the contractor an original and a copy of a payment summary
    • keep a copy of the payment summary to help prepare your annual report for PAYG withholding where no ABN is quoted.
    • keep records of transactions in which you withheld 46.5% separate from other payment records, because you cannot claim any GST input tax credits for these payments if GST was included in the price.
    • pay the amount you withheld to us with your activity statement payments.
    Further Information

    For more information, refer to No ABN withholding - questions and answers.

    End of further information
    Further Information

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    End of further information
    • Last modified: 28 Jun 2012QC 22703