• Pay as you go withholding

    You must register for pay as you go (PAYG) withholding if you need to withhold tax from payments you make to your workers and some other businesses. The most common payments you withhold amounts from are those to:

    • employees
    • directors
    • other workers, such as contractors
    • businesses that don't quote their ABN to you.

    See also:

    How to register or cancel PAYG withholding

    If your business has an ABN, you can register or cancel a PAYG withholding registration:

    • online through our Business PortalExternal Link
    • by phone – if you're an authorised contact for the business, phone us on the business enquiries line
    • through your registered tax agent or BAS agent.

    You can also lodge a form with us:

    • to register, complete the Add a new business account (NAT 2954) form
    • to cancel, complete the Application to cancel registration (NAT 2955) form

    You can order these forms using our online publication ordering service for businessExternal Link.

    Withholding when you don't need an ABN

    If you don't need to have an ABN but need to withhold tax from a payment, you should register for a PAYG withholding account.

    You might need to withhold tax if:

    • a supplier has not quoted their ABN
    • you employ, or intend to employ, a person such as a nanny or gardener to work for you
    • you pay royalties, dividends or interest to non-residents, or withhold from, or report investment income to Australian residents.

    Next step:

    Last modified: 06 Feb 2017QC 31790