No Tax deductibility of employer payments to employees if PAYG obligations not met

No tax deductibility of employer payments to employees if PAYG obligations not met

From 1 July 2019, an employer will be allowed a tax deduction for payments to an employee only when the PAYG withholding obligations have been met. These are: the withholding of the tax when the employee is paid and the reporting of that amount to the ATO.

https://www.ato.gov.au/General/Gen/Removing-tax-deductibility-of-non-compliant-payments/#

Ref: TaxWise Business June 2019