New PAYG Rules From July 1

​From July 1 2019, businesses will not be able to claim a deduction for payments if they haven’t met the reporting and payment obligations for that deduction.

What does this mean?

Quite simply - you can only claim deductions for payments you make to your employees or contractors where you have complied with the pay as you go (PAYG) withholding and reporting obligations for that payment.

For example:

If the PAYG 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
• Report the amount to the tax office.

​A payment where PAYG tax has not been withheld or reported is called a non-compliant payment, and will not be eligible for a deduction. However, if you make a mistake (such as withholding or reporting an incorrect amount) and voluntarily correct it, you will not lose your deduction.

These changes primarily target the road freight, IT, and security, investigation or surveillance industries – which means they will impact businesses as varied as web design, locksmiths and road freight.

For more information about these changes, click here. If you have any questions or concerns, please don’t hesitate to give us a call on (08) 9791 5877.