Pay As You Go (PAYG) Withholding Tax
A single, integrated system for reporting and withholding amounts and tax on business and investment income.
- Tax Ruling: Withholding Tax
- ATO: Employee/Contractor Decision Tool - How to determine if workers are employees or independent contractors?
- Statement by a Supplier (PDF 191kb - Adobe Acrobat) (Declaration and Covering Memorandum)
- Volunteer Issues
Dealing with suppliers who do not have an Australian Business Number (ABN)
The PAYG legislation provides that where the University makes a payment to a supplier who does not quote an ABN, the University is required to withhold 46.5% of this payment. This is referred to as "No ABN Withholding". It is a compliance measure to ensure that entities, especially those not required to be registered for GST purposes, are not able to avoid their income tax obligations by requesting cash payments. This withholding tax may be avoided if the supplier signs a statement indicating they are not required to have an ABN (a Statement by a supplier).
To avoid subjecting the payments to these withhold the No ABN Withholding tax , the University requires all suppliers who do not quote an ABN to sign a Statement by a Supplier (PDF 191kb - Adobe Acrobat) form. Please note that the link to the Statement by a Supplier (PDF 191kb - Adobe Acrobat) form provided also provides a covering memorandum explaining the University's need for and reliance on this document.
This form has also been slightly modified for University purposes, so please be sure to use this version, not an older version, or one from the Australian Taxation Office website.
Contact
Kristian Thoroughgood, Tax Accountant x21922