Businesses primarily in the building and construction industry are required to report the total payments they make to each contractor for building and construction services.
You should be keeping records of relevant contractor payments, including:
• Total gross amount they were paid in the financial year (total paid, including GST)
• Total GST included in the gross amount paid
The information reported will be used for data matching to detect those contractors who may not have lodged their tax returns or who may not have included all of their income when lodging their tax return.
The first Taxable payments annual report is due 21 July 2013 for payments made in the 2012-13 financial year. In this first year, businesses that lodge their business activity statements quarterly may lodge by 28 July 2013.
If you are in the building and construction industry and require advice in regards to contractors and/or employees our experienced accountants and lawyers at The Quinn Group can assist you. Submit an online enquiry or call 1300 QUINNS (1300 784 667) OR +61 2 9223 9166 to arrange an appointment.