From 1 July 2012, businesses in the Construction Industry need to report the total payments they make to each contractor for building and construction services each year.
Details you need to report
For each contractor, you need to report the following details each financial year:
- ABN, if known
- Full Name
- Phone Number
- Gross amount you paid for the financial year (this is the total annual amount paid inclusive of GST)
- Total GST included in the gross amount you paid
The annual report must be lodged with the Tax Office by the 28th August each year. Penalties may apply if the report is not lodged on time.
What you need to do now
You need to report these payments to the ATO on the Taxable payments annual report. You can lodge this directly with the Australian Taxation Office or contact us to help compile this report.
If you haven't had any contractors you are still required to lodge a not required to report form which can be found at www.ato.gov.au/tparnilreport
If you cannot easily collate the information required above then you will probably need to change how you record your contractor information.
We can help so give us a call on (07) 5439 1600. We will charge you a fee for this based on exactly what is required but doing nothing is not an option or you may end up being targeted by the ATO for further compliance action and penalties. In that case you will still have to update your reporting system and the longer you leave it the greater the potential cost to you.