From 1 July 2012, businesses in the building and construction industry will be required to report their payments to contractors for building and construction services to the ATO on the Taxable payments annual report.
Who needs to report?
If 50% or more of your business activity or business income relates to building and construction services, and you have an ABN, you need to report payments you make to contractors.
A contractor can be an individual, partnership, company or trust.
The ATO requires specific details to be reported on each contractor, and has provided a worksheet for this purpose, which you can obtain from MTK.
When to report
The first Taxable payments annual report is due 21 July 2013 for payments made in the 2012?2013 financial year. In this first year, if you lodge your BAS statements quarterly, you may lodge by 28 July 2013.? You can lodge your report online or on paper.
Payments you do not report
You?re not required to report on payments where the invoices are for materials only, such as building supplies.
Do not report any unpaid invoices as at 30 June each year.
You are not required to report payments to employees or workers who you complete PAYG reports for.
You do not need to report if you are a homeowner making payments to contractors for domestic projects.
If you are in a consolidated group or multiple entry consolidated group for income tax purposes, you do not need to report payments you make to another member of that same group.
For a list of examples of building and construction services requiring compliance with the new reporting, visit www.ato.gov.au and click on ?Businesses?.? To discuss your business and your obligations from 1 July 2012, contact OBT.
ATO requires New Taxable Payments Reporting for building and construction industry
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