Every business that operates in the Building and Construction industry and makes payments to contractors are required to complete and lodge a ‘Taxable Payments Annual Report’.
This report includes the total payments you make to each contractor for building and construction services. You must lodge this report to the ATO every year by 28 August.
What to lodge?
ABN – If known
What not to lodge?
You do not need to report:
Unpaid invoices as at 30 June
Why do I need to do this report?
Using this information, the ATO will ‘data match’ the amounts you report as paid against what contractors report (in their tax returns) as received.
During this process, the ATO will also find instances of ‘sham contracting’ – where an employer attempts to disguise an employment relationship as an independent contracting arrangement, usually done to avoid the responsibility of employee entitlements like superannuation, insurance and long service leave obligations – and those not meeting the Personal Service Income rules.
How to lodge?
You can lodge either
Online via Business Portal
By mailing the paper form directly to the ATO
To make it easier to complete the annual report, you should keep very good records of your contractors in, for example, Xero or MYOB. These videos show you how to do this in Xero and how to do this in MYOB.
The Building & Construction industry casts a wide net, below is "some" of work activities that satisfy the definition. If you would like the
If you need any help. Contact us at Dolman Bateman or Buildersbooks if you are looking for an experienced accountant or Bookkeeper.
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