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  • Pay as you go withholding

    You must register for pay as you go (PAYG) withholding if you need to withhold tax from payments to workers and other businesses. Common examples include payments to:

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

    You can register your business for an ABN, GST, PAYG, a business name and an AUSkey to access the Business Portal, all at the same time on the Australian Business RegisterExternal Link.

    You must register for PAYG withholding before you're first required to withhold an amount from a payment.

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

    See also:

    How to register or cancel PAYG withholding

    If you have an ABN

    If your business has an active ABN, you can register or cancel your PAYG withholding business account:

    You can also:

    • download and complete the Add a new business account (NAT 2954) form
    • order the Application to cancel registration (NAT 2955) form.

    Use our publication ordering service for businessExternal Link to obtain these forms.

    If you don't need an ABN but have to withhold tax

    You must register for a PAYG withholding account if you don't need an ABN but have to withhold tax from a payment.

    You must withhold tax if:

    • you self-manage your National Disability Insurance Scheme funds and directly employ staff
    • a supplier has not quoted their ABN
    • you employ, or intend to employ, a person such as a nanny, cleaner, cook or gardener
    • you pay royalties, dividends or interest to non-residents, or withhold from, or report investment income to Australian residents.

    You can register your PAYG withholding account and not have an ABN by:

    • phoning our business line and speaking to a customer service representative
    • completing an Application to register a PAYG withholding account (NAT 3377)
    • contacting your registered tax agent or BAS agent.

    To cancel your PAYG withholding account, you can:

    • phone our business line and speak to a customer service representative
    • complete an Application to cancel registration (NAT 2955) form
    • ask your registered tax agent or BAS agent.

    Next steps:

    See also:

    Last modified: 05 Feb 2018QC 31790