NO MORE TAX DEDUCTIONS FOR NON-COMPLIANT WAGES PAYMENTS.
The Government is trying to make it harder for the Black Economy to function. If certain boxes aren’t ticked, like withholding tax for casuals, part-timers, full-time staff or contractors without an ABN, you will miss out on critical tax deductions. This measure is closely linked to Single Touch Payroll and will apply from 1 July 2019.
There are already administrative penalties for failure to withhold income tax, however this new rule is in response to the Black Economy Taskforce Report, i.e. it makes it much easier to detect any non-withholding or thwart phoenix-type activity.