Businesses who operate primarily in the building and construction industry and make payments to contractors for building and construction services are required to lodge a "Taxable Payments Annual Report" by 28th August 2015.
You are considered to be a business that is primarily in the building and construction industry if any of the following apply:
- In the current financial year, 50% or more of your business income is derived from providing building and construction services
- In the current financial year, 50% or more of your business activity relates to 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
The information that is required to be disclosed in relation to payments made to subcontractors during the financial year in the Taxable Payment Annual Report is as follows:
- ABN, name and address
- Gross amount to be paid for the financial year (inclusive of GST)
- The total GST included in the gross amount you paid
We note that you do not need to report payments for materials only and you only need to report payments that have been physically paid before 30 June.
You will be able to lodge the Taxable Payments Annual Report using one of the following methods:
- Online using the Business Portal or Standard Business Reporting (SBR)
- Completing a paper Taxable Payments Annual Report (NAT 74109)
In most cases your bookkeeping software should be able to support the new Taxable Payments Annual Report.
The Fact Sheets below provide more detailed information on the taxable payments reporting system, including examples of those businesses required to report, types of payments to be reported, types of payments excluded, sample of the Taxable Payments Annual Report and answers to frequently asked questions.
If you would like to arrange a meeting to determine how the rules will apply specifically to your business or need assistance in submitting the reports please do not hesitate to contact our office on 9387 5637.