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Tax and compliance · Australia

No-ABN withholding: what to do when a supplier doesn’t quote an ABN

If a supplier doesn’t quote an ABN on its invoice or another document, you must generally withhold 47% of the payment and send it to the ATO, unless an exception applies. The main exceptions are payments of $75 or less excluding GST, suppliers who give you a valid Statement by a supplier (for example, a hobby or a wholly private supply), and individuals under 18 paid $350 or less a week.

Last updated · Rules checked against the official sources listed below

Key facts

Withholding rate
47% of the payment
No withholding needed
$75 or less, excluding GST
Report withheld amounts
BAS label W4
Annual report (NAT 3448) due
31 October

When must you withhold?

When you pay a supplier who hasn’t quoted an ABN to you, on the invoice or in another way, and none of the exceptions applies.

You don’t need to withhold if you hold an invoice or other document that shows the supplier’s ABN, or the ABN of an agent acting for them, or if one of the exceptions applies.

Source: ATO: Withholding if ABN is not provided

When you don’t need to withhold

  • The total payment is $75 or less, excluding GST. Splitting a larger supply into payments of $75 or less doesn’t avoid withholding.
  • The supplier gives you a Statement by a supplier (NAT 3346) with a valid reason, such as a supply made as part of a hobby or private recreational pursuit, or one that is wholly private or domestic. A supplier running a business, or entitled to an ABN, can’t use the statement.
  • The supplier is an individual under 18 and your payments to them are $350 or less a week.
  • The supply is wholly input taxed for GST.

Keep the supplier’s statement, and records that show why you didn’t withhold, for five years. A statement can’t be relied on if the payment contradicts it.

Sources: ATO: Payments you don’t withhold from, ATO: Statement by a supplier not quoting an ABN (NAT 3346)

How to withhold, report and pay

  • Withhold 47% from the payment and pay the supplier the rest.
  • Report the total withheld from suppliers who didn’t quote an ABN at label W4 of your activity statement, and pay it to the ATO with your PAYG withholding.
  • Give the supplier a PAYG payment summary – withholding where ABN not quoted (NAT 3283) and keep a copy for five years.
  • Lodge the PAYG withholding where ABN not quoted – annual report (NAT 3448) by 31 October.

Sources: ATO: Pay as you go (PAYG) withholding on the BAS, ATO: PAYG payment summary, withholding where ABN not quoted (NAT 3283), ATO: PAYG withholding where ABN not quoted, annual report (NAT 3448)

What AP should check

  • Ask for the ABN at supplier setup, before the first payment, rather than at payment time.
  • Check the ABN on each invoice. An invoice with no ABN over $75 (excluding GST) needs either an ABN, a supplier statement or withholding before payment.
  • Flag suppliers without an ABN in the vendor record so the payment run doesn’t pay them in full by mistake.
  • If you don’t withhold when you should have, the ATO can charge a penalty equal to the amount you should have withheld.

Sources: ATO: Withholding if ABN is not provided, ATO: Payments you don’t withhold from

Where Aequo AP fits

Aequo AP is accounts payable automation for SMB and mid-market finance teams, with integrations for the major accounting systems and ERPs. Its Xero integration is live: approved invoices are created as bills in Xero, which stays your system of record.

Aequo AP does not read or check ABNs and does not calculate or withhold PAYG amounts. Handle withholding in your accounting or payment system, and set up suppliers with an ABN before their first invoice.

Aequo AP does not:

  • Read or validate ABNs on invoices
  • Calculate or withhold the 47%
  • Lodge BAS or the NAT 3448 annual report

Frequently asked questions

What is the no-ABN withholding rate?

47% of the payment. It applies when a supplier doesn’t quote an ABN and no exception applies.

Do I have to withhold if the invoice is under $75?

No. You don’t need to withhold where the total payment is $75 or less, excluding GST. Splitting a larger job into smaller payments doesn’t count.

What if the supplier is a hobbyist?

They can give you a Statement by a supplier (NAT 3346) saying the supply was made as part of a hobby or private recreational pursuit. With a valid statement you don’t withhold. Keep it for five years.

Where do I report no-ABN withholding?

At label W4 on your activity statement, and in the PAYG withholding where ABN not quoted annual report (NAT 3448), due by 31 October.

Do I give the supplier anything?

Yes. Give them a PAYG payment summary – withholding where ABN not quoted (NAT 3283), and keep a copy for five years.

What happens if I don’t withhold?

The ATO can apply a penalty equal to the amount you should have withheld.

Check supplier invoices before they become bills

Aequo AP captures supplier invoices, matches them to purchase orders and receipts, routes approvals and flags exceptions and duplicates, then creates the approved bill in your accounting system.

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Related guides

Official sources

  1. ATO: Withholding if ABN is not provided — The 47% rate and when a supplier has not quoted an ABN. Checked 24 October 2026.
  2. ATO: Payments you don’t withhold from — The $75 rule, under-18 payments and other exceptions. Checked 24 October 2026.
  3. ATO: Statement by a supplier not quoting an ABN (NAT 3346) — Checked 24 October 2026.
  4. ATO: Pay as you go (PAYG) withholding on the BAS — Label W4. Checked 24 October 2026.
  5. ATO: PAYG withholding where ABN not quoted, annual report (NAT 3448) — Due 31 October. Checked 24 October 2026.
  6. ATO: PAYG payment summary, withholding where ABN not quoted (NAT 3283) — Checked 24 October 2026.