Build your financial security with OBT Financial Group – Lockyer Valley Business of the Year recipients and specialist financial advisers to individuals, business owners and farming families on accounting, tax, business advice and wealth planning for over 40 years.New PAYG laws to place focus on on-time BAS lodgement
Late last year, new legislation to deny a tax deduction for certain payments if the associated withholding obligations have not been complied with were passed.
Payments that are impacted includes salary, wages, commissions, bonuses or allowances to an employee; director’s fees; payments under a labour hire arrangement; payments to a religious practitioner; and payments for a supply of services.
The deduction is only denied where no amount has been withheld at all or no notification is made to the commissioner.
We are advising OBT clients ASAP on the importance of on-time lodgement of BAS if they want to hold on to their deductions.
The on-time lodgement of BAS is now even more important than ever, because a failure to lodge the BAS on time may result in a business permanently losing its tax deduction for wages paid.
The ATO link is here: https://www.ato.gov.au/general/gen/removing-tax-deductibility-of-non-compliant-payments/
We will keep an eye on this development and keep you apprised.
