You can only claim deductions for payments you make to your workers (employees or contractors) from 1 July 2019 where you have complied with the pay as you go (PAYG) withholding and reporting obligations for that payment.This applies to income tax returns lodged for the 2020 income year onwards.  

Businesses will only lose their deduction if no amount is withheld or reported to the ATO, unless they voluntarily disclose this before the ATO examines their affairs.  

This measure aims to level the playing field for honest businesses doing the right thing by their workers. It is part of the Government’s response to recommendations from the Black Economy Taskforce.  

Please visit the ATO website for further information. 

To find out more, please contact your accountant at Rosenfeld Kant on (02) 9375 1200 or email gary@roskant.com.au, raul@roskant.com.au, elias@roskant.com.auÂ