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James Millar
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Again it depends on whether they are an employee or contractor. Employees need an Australian TFN otherwise withhold 46.5% (doesn’t matter where they are). If they’re a contractor and they come to Australia and provide services in Australia then they are likely carrying on an enterprise here. Therefore they need an ABN – othewise ABN witholding applies at 46.5%.

The tax law basically tries to place the burden of tax collection on the business payer that is based here. So as a business you should always check ALL withholding obligations before you hand the money over to the payee – getting it back can be very hard (and the ATO hold the payer accountable not the payee).

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