The new rules started from 1 July 2019 and apply to income tax returns lodged for the 2020 income year and onwards.
In order to claim a deduction, you need to:
- withhold the required amount (if applicable) before you pay your worker; and
- report that amount to The Australian Taxation Office (ATO).
If you make a mistake and withhold or report an incorrect amount, you won't lose your deduction. You still need to correct your mistake as soon as possible to minimise penalties.