Businesses in the building and construction industry, take note
21 July 2014 deadline to report total payments made to each contractor you enlisted the services of in 2013-14.

You will need to report these payments to the Tax Office on the Taxable payments annual report.

The taxable payments reporting system was initially introduced to address longstanding compliance issues by contractors in the building and construction industry. Tax compliance issues that were identified included non-lodgement of tax returns, income being omitted from tax returns that were lodged, non-compliance with goods and services tax (GST) obligations, failure to quote an Australian business number (ABN), and use of an invalid ABN.

The pointers below will help you adequately prepare for the looming deadline.

Work out if you need to report
You need to report if all 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, and
  • you have an Australian business number (ABN).

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

  • in the last financial year, 50% or more of your business income was derived from providing "building and construction services"
  • in the last financial year, 50% or more of your business activity related to "building and construction services", or
  • in the financial year immediately before the last financial year, 50% or more of your business income was derived from providing "building and construction services".

Note: contractors who pay other contractors for building and construction services may also be required to report if they are carrying on a business that is primarily in the building and construction industry. Remember – a contractor can be an individual, partnership, company or trust.

Click here to read the full article in our July newsletter on page 6, including what to report, and what not to report or call GJB on 02 9686 3130.

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