Reporting burden increases with the introduction of Taxable Payments Reporting regime for building and construction businesses.
From 1 July 2012 businesses in the Building and Construction industry will be required to report payments paid to each contractor paid during the year. The system will be similar to the PAYG Withholding system currently used for employees. A Taxable Payments Annual Report will be due for lodgement by 21 July each year. The following details will be required for each contractor paid during the year ended 30 June:
- ABN
- Name
- Address
- Gross amount paid during the year including GST
- Total GST included in the gross payment.
Good record keeping will be essential to enable this report to be prepared. Business in the building and construction industry will need to ensure that their accounting software or bookkeeping system can keep track of contractor payments.
These records will be used for ATO data matching purposes and information gathered may be passed on to building regulatory bodies eg BSA.
To see if you will be affected by the new regulations go to www.ato.gov.au and type in “taxable payments reporting” in the search. www.ato.gov.au/content/00313486.htm