Building & Construction industry businesses must lodge a ‘Taxable Payments Annual Report’ to the ATO at the end of each financial year. This new lodgement requirement will only apply to businesses involved in the Business & Construction industry and must be lodged to the ATO by the 21st July of each financial year.
The ATO will consider your business as trading in the Business & Construction industry if any of the below criteria are relevant for your business:
1- 50% of the business income has come from providing building & construction services
2- 50% of the business activity has been related to building & construction services
3- If the above two criteria would have been satisfied in the previous financial year
This new report will outline the contractors used by your business during the financial year for the purpose of Building & Construction services only. The details you will need to provide in the report for each contractor are:
1- Payees Name
2- Payees ABN
3- Payees Address
4- Total Amount paid (including GST) for the financial year *
5- Total GST paid for the financial year
*Please note if an invoiced has been issued but not paid prior to the 30th June each year this amount should be excluded from the total reported to the ATO.
If your business falls under this industry and is required to lodge this form please also note that the following payments are also disregarded:
– Any payments made to contractors that are not for services related to Building or Construction
– Amounts which you have withheld tax under PAYG Withholding requirements e.g.
- Voluntary Agreements
- Labour Hire or On-Hire Arrangements
– Payments that are reported in the PAYG Annual Report
For more information, please contact Brad Mur on (03) 9798 66 22 or email at Brad@zimsenpartners.com.au
About the Author
Brad has many year’s experience in Tax Accounting. Brad’s key clients range from Manufacturing, Residential and Commercial Construction, Service Tradies and Non-Profit Organisation.
This article was produced by Zimsen Partners. It is intended to provide general information only in summary format on accounting, business advisory and taxation issues. It does not constitute accounting advice, and should not be relied on as such.