Withholding from payments for supplies

Payers must withhold 47% (from 1 July 2017) 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 47% (from 1 July 2017) from the payment if they have reasonable grounds to believe that the ABN quoted is invalid – for example, it belongs to another entity.