Building & Construction industry - new reporting requirements!
The new regulations apply to registered businesses where 50% of business activity in the current financial year or 50% of income in the previous or current financial year relates to or was derived from building and construction services and the business made payments to contractors.
You will be required to submit the report detailing the following:
- each contractor’s ABN;
- their name and address;
- the gross amount you paid them for the financial year including the total GST.
The report will be due by 21 July each year with the first report due on 21 July 2013 for payments made to contractors in the 2013 financial year.
If you are a contractor who provides building and construction services to businesses you will need to ensure that:
- your financial records are accurate; and
- you report all income received on your tax return.
WARNING! As a result of these reporting requirements, the ATO will be in a position to compare the income noted on contractors’ tax returns against the payments made to them by their customers. If there is a discrepancy between a contractor’s income and the payments reported by their customers, the ATO may conduct an investigation into the contractor’s financial affairs.