From 1 July 2019, the following payments can only be claimed as a tax deduction if they comply with the PAYG Withholding and Reporting Obligations:

• salary, wages, commissions, bonuses or allowances to an employee;
• directors’ fees;
• payments under a labour hire arrangement; and
• payments for a supply of services (except from supplies of goods and real property) where the contractor has not provided their ABN.

To ensure your payments are still tax deductible, you must:

• withhold the appropriate amount of PAYG Withholding Tax from that payment; and
• report that amount to the ATO (via your Activity Statement).

It is not too late if you have failed to comply with the above.

A voluntary disclosure can be made to the ATO in the approved format provided an ATO audit has not yet commenced.

Should you have any queries about voluntary disclosures, please contact your Harris Black team to discuss further.