Effective 1 July 2012, businesses in the building and construction industry must now report to the ATO the total payments made to each contractor who provides them with building and construction services each year.
These payments are to be reported as part of the Taxable payments annual report.
Who needs to report
If the following describes your building and construction business, then you would need to report your payments.
- Your business is primarily in the building and construction industry
- Payments are made to contractors who provide you with building and construction services
- Your business has an Australian business number (ABN).
How to determine that the business is considered to be primarily in the building and construction industry:
- In the current financial year, 50% or more of the business income is derived from providing building and construction services
- In the current financial year, 50% or more of the business activity relates to building and construction services
- In the financial year immediately before the current financial year, 50% or more of the business income was derived from providing building and construction services.
What do you need to report
These are the information about each contractor that would need to be reported each financial year:
- ABN (if known)
- Name
- Address
- Gross amount paid for the financial year (inclusive of GST).
- Total amount of GST is to be separately disclosed.
When to report
The first Taxable payments annual report is due on 21 July 2013 for payments made in the 2012-13 financial year. In this first year, if the activity statement is lodged quarterly, it can be lodged by 28 July 2013.