TAXABLE PAYMENTS REPORTING IN THE BUILDING AND CONSTRUCTION INDUSTRY

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Taxable payments reporting in the construction and building industry – 

taxable payment reporting in the building and construction industry

Businesses in the building and construction industry who pay contractors for constructions services must report the amount of payment to the ATO by 28th August each year.

These taxable payments need to be reported on a specific form called a Taxable Payments Annual Report. The information reported includes:

  •  Name of the contractor
  • ABN of the contractor
  • Address of the contractor
  • Total amount paid, including GST, for the financial year
  • Total GST included in the payment

safety hatThe ATO state that taxable payments reporting aims to improve tax compliance by those contractors that aren’t doing the right thing. In other words, to catch those contractors who are currently “flying under the radar”. The information is used to determine those contractors that haven’t lodged tax returns and to match the income of those who have.

Businesses must remember that they have an obligation to withhold 46.5% of payments made to contractors, if the contractor fails to give them an ABN. Further, the business should search the ABN to ensure it is current and correct. This can be done at www.abr.business.gov.au

The ATO continue to push hard on this issue. If you’re an employer, be sure to have the administrative systems to gather all your necessary information. If you’re a contractor, be sure your ABN is current, your tax returns are up to date and you declare all your income.

For more information on the reporting taxable payments check out the ATO site

 

If you require any assistance, Optima Partners are always happy to assist.

Enrico De Pietro

Enrico De Pietro

Director – Optima Partners

Optima Partners offers support to all businesses. Whatever your requirements

For more information on how Optima Partners’ services can help your business, contact the team at info@optimapartners.com.au for a consultation.

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