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
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