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.
This change applies to payments of salary, wages, commissions, bonuses or allowances to an employee, payments of directors’ fees, payments to a religious practitioner, payments under a labour hire arrangement, and payments for a supply wholly or partly for services where the contractor has not provided you with their A B N.
You won’t be able to claim a deduction for those payments you make to your worker so you miss out on your deduction.
If you make a mistake you won’t lose your deduction, but you will need to correct your mistake. If you withheld an incorrect amount, you can correct your mistake by lodging a voluntary disclosure in the approved form. If you withheld the correct amount but made a mistake when reporting it, you can still correct your mistake. . You can find more information on how to do this on our website at ato.gov.au/paygwdeductions and go to the Correcting a mistake section.
More information is available on our website at ato.gov.au/paygwdeductions, or speak to us in your native language by phoning the Translating and Interpreting Service on 13 14 50 and ask to be connected to 13 28 66.
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