New reporting requirements for building and construction industry

Australian Business Consultants

 From 1 July 2012, businesses in the building and construction industry will need to report to the ATO each year, the total payments they make to each contractor for building and construction services.

Business operators in the industry are encouraged to check how they keep their records to make sure they have the details that will be required for the new Taxable payments annualreport.

The first annual report is due 21 July 2013 for payments made in the 2012-13 financial year. In the first year businesses that lodge their business activity statements quarterly, may lodge by 28 July 2013.

Do you need to report to the ATO?

From 1 July 2012, you will need to report if all of the following apply:

·         you are a business that is primarily in the building and construction industry

·         you make payments to contractors for building and construction services

·         you have an Australian business number (ABN).

·         You are considered to be a business that is primarily in the building and construction industry if any of the following apply:

New ATO Reporting

·         in the current financial year, 50% or more of your business activity relates to building and construction services

·         in the current financial year, 50% or more of your business income is derived from providing building and construction services

·         in the financial year immediately before the current financial year, 50% or more of your business income was derived from providing building and construction services.

What will you need to report?

For each contractor, you need to report the following details each financial year:

·         ABN, if known

·         name

·         address

·         gross amount you paid for the financial year (this is the total paid including GST)

·         Total GST included in the gross amount you paid.

The details you need to report will generally be contained in the invoices you receive from your contractors.

If you have any questions in regards to the new reporting requirements for your business, or any other ATO related queries, please contact us at 563 North Road Ormond Victoria 3204 Australia. Our experienced team of accountants and tax agents can assist you to minimize your tax and answer any questions you may have. For more information call us on 03 9597 9966 to book an appointment..