From 1 July 2012, businesses in the building and construction industry need to report the total payments they make to each contractor for building and construction services each year. You will need to report these services to the Australian Taxation Office (ATO) on the Taxable payments annual report.
Who needs to report?
You need to report if all of the following apply:
- You are a business who is in the building construction industry; and
- You make payments to contractors for building and construction services; and
- You have an Australian Business Number.
What do I need to report?
For each contractor, you need to report the following details each financial year:
- Australian Business Number; and
- name; and
- address; and
- gross amount you paid for the financial year (including GST); and
- total GST included in the gross amount paid.
What payments do we need to report?
You will need to report payments you made to contractors for building and construction services.
Building and construction services include 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:
- Management of building and construction services
- Qualification of building and construction services
- Site preparation.
What payments do you not report?
Do not report:
- payments for materials only;
- any unpaid invoices as at 30 June each year;
- payments which you are required to report in a PAYG Withholding payment summary annual report, such as payments to employees; and
- payments made by home owners for private and domestic projects.
When do I have to report?
The taxable payments annual report is due 21 July each year.
The first Taxable payment annual report is due 21 July 2013 for payments made during the 2012/2013 financial year.
Should you have any questions regarding the completion of the Taxable payments annual report, please contact Ellingsen Partners.