As part of the 2011/12 Federal Budget, the Government announced the introduction of taxable payments reporting for businesses in the building and construction industry. Taxable payment reporting system is applicable to those primarily in the building and construction industry and who make payments to contractors for building and construction services. The aim of the new system is to improve compliance with tax obligations by those contractors who are currently not doing the right thing. The information reported about payments made to contractors will be used by ATO for data matching to detect contractors who have defaulted with their tax obligation. For instance, those who have not:
You need to report to the ATO if all of the following apply:
You’re considered to be a business that is primarily in the building and construction industry if any of the following apply:
For each contractor, you need to report the following details each financial year:
You are required to report the payments you make to contractors in the financial year in which the payments are actually made (cash basis).
You need to report payments you make to contractors for building and construction services. The definition of building and construction services is broad – it includes any of the activities listed below if they are performed on, or in relation to, any part of a building, structure, works, surface or sub-surface. For further details on payments you need to report, refer to the 2 ATO links below:
Payments you don’t report
You do not need to report the following payments:
Your Taxable payments annual report is due by 28 August each year. Penalties may apply for not lodging your annual report by the due date.
At Infinity Group we understand that the industry is dynamic and challenging, therefore we offer a range of comprehensives services including:
To book an obligation free consultation with one of our friendly staff, please call (03) 9792 2772 or email firstname.lastname@example.org
Established in 1999, Infinity Group is a multi-service firm that specialise in the areas of Finance, Property, Accounting & Taxation, Insurance and Migration Services.