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.
Tax Talk May: Removing tax deductibility
Source: ATO/SBS
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.
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