Withholding from payments for supplies

Payers must withhold 49% from the total payment for a supply unless one of the following applies:

  • payers have an invoice or some other document relating to the supply on which the supplier's ABN is quoted
  • the ABN of the supplier's agent is quoted (if the supply is made through the agent)
  • one of the exceptions to withholding applies, or the supplier is not entitled to an ABN.

Payers may also be required to withhold 49% from the payment if they have reasonable grounds to believe that the ABN quoted is invalid – for example, it belongs to another entity.

Last modified: 13 Jan 2015QC 17241