From 1 July 2019, employers can only claim deductions for payments made to workers where they’ve met the Pay As You Go (PAYG) withholding obligation for that payment.

CEO Richard Suttie

By Richard Suttie

Where the PAYG withholding rules require an amount to be withheld, you must:

  • withhold the amount from the payment before they pay their worker
  • report that amount to the ATO.

Employers won’t lose their deduction if they withhold:

  • an incorrect amount by mistake – to minimise any penalties you can correct the mistake by lodging a voluntary disclosure in the approved form.
  • the correct amount but make a mistake when reporting – seek our assistance to correct the mistake as soon as possible.

Employers will only lose the deduction if there is a withholding or reporting requirement and no amount is withheld or reported to the ATO unless the employer has made a voluntary disclosure in the approved form before the ATO tell them we have begun an examination of their affairs.

This change is part of the government response to recommendations from the Black Economy Taskforce.

If you need further information on the matter, contact our office on 03 9417 3511


Richard E Suttie Pty. Ltd. Trading as Suttie Financial Group.

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