Show download pdf controls
  • Changes to deductions for non-compliant payments to workers

    Let your business clients know the rules for claiming deductions for payments to workers are changing. From 1 July 2019, they can only claim deductions for payments made to workers where they've met the pay as you go (PAYG) withholding obligation for that payment.

    Where the PAYG withholding rules require an amount to be withheld, your client must:

    • withhold the amount from the payment before they pay their worker
    • report that amount to us.

    Your client won't lose their deduction if they withhold:

    • an incorrect amount by mistake – to minimise any penalties you can correct your client's mistake by lodging a voluntary disclosure in the approved form.
    • the correct amount but make a mistake when reporting – help your client to correct their mistake as soon as possible.

    Your client will only lose their deduction if there is a withholding or reporting requirement and no amount is withheld or reported to us, unless they make a voluntary disclosure in the approved form before we tell them we have begun an examination of their affairs.

    This change is part of the government response to recommendations from the Black Economy Taskforce.

    See also:

    Last modified: 05 Feb 2019QC 57841