The following community information is brought to you by the Australian Taxation Office.
From 1 July 2019, you can only claim deductions for payments you make to your workers, such as employees or contractors, where you have complied with the pay as you go withholding and reporting obligations for that payment.
If the pay as you go withholding rules require you to withhold an amount from a payment you make to a worker, you must withhold the amount from the payment before you pay it to them, and report the amounts to us.
You won't be able to claim a deduction for payments you make if you don't withhold any pay as you go tax or report the pay as you go tax to us. If you make a mistake, you will not lose your deduction. You should correct your mistake as soon as possible.
