ATO new taxable payment reporting – building and construction industry from 1 July 2012
Business in the building and construction industry is required to report the total payment they make to each contractor for building and construction services each year.
Your business is considered to be a business that is primarily in the building and construction industry if any of the following apply:
• in the current financial year, 50% or more of your business income is derived from providing building and construction services
• in the current financial year, 50% or more of your business activity relates to building and construction services
• in the current financial year immediately before the current financial year, 50% or more of your business income was derived from providing building and construction services.
Your business is required to report each contactor the following details each financial year:
• ABN, if know
• name
• address
• gross amount you paid for the financial year, GST inclusive
Your business is not required to report on payments for materials only, such as building supplies and materials.
If your business makes payments to contractor for materials and labour, your business is required to report the total amount including materials and labour.
Your business is required to report (on the cash basis) the payment they make to contractors in the financial year in which the payments are actually made.
Taxable payments annual report is due 21 July each year.
