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Taxable Payment Reports: compulsory for building and construction businesses

 

Are you in the building and construction industry?  Do you know that you need to report detailed information to the ATO about all the building and construction contractors you have paid each year?  No?  Well read on….

I’ve noticed that many business owners in the building and construction industry are not yet aware that they need to report the total amount they’ve paid to each contractor, for building and construction services, every year, to the ATO.

The information must be reported on the Taxable Payments Annual Report and must be lodged with the ATO by 28 August each year.

The ATO will use this information to cross-check and data-match so they can find people and businesses who are not lodging a tax return or are not declaring all of their income.   So you may need to look at your bookkeeping to make this an easy task to complete and accurate, as there are penalties for late submissions or omitting information.

Below is an example from the ATO’s website:

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The ATO is currently running 1 hour webinars for businesses in the building and construction industry, that make payments to contractors for building and construction services.  They outline the taxable payments reporting requirements.  Book your place at one of their webinars here.

Please contact us if you would like to discuss your situation or would like further information.

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