Building & Construction Industry - Taxable Payments Annual Reporting

Written on the 25 July 2013

The Taxable Payments Annual Reporting is a new obligation placed on businesses in the Building & Construction Industry for the 2013 financial year. The first Taxable Payments Annual Report is due 21st July 2013 for payments made in the 2012-13 financial year (forms have been sent out from the ATO) . In this first year if you lodge your business activity statement quarterly, you may lodge on 28th July, 2013. The following is more information regarding your obligations:

Who needs to report?

From 1 July 2012, you need to report if all of 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
• you have an Australian business number (ABN).

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.

Payments you need to report

You need to report payments you make to contractors for building and construction services.

Building and construction services include any of the activities listed below if they are performed on, or in relation to, any part of a building, structure, works, surface or sub-surface:

• alteration
• assembly
• construction
• demolition
• design
• destruction
• dismantling
• erection
• excavation
• finishing
• improvement
• installation
• maintenance
• management of building and construction services
• modification
• organisation of building and construction services
• removal
• repair
• site preparation.

 

Payments you do not report

• Payments for materials only

You are not required to report on payments if the invoices are for materials only, such as building supplies and materials.

• Unpaid invoices as at 30 June each year

Do not report any unpaid invoices as at 30 June each year – for example, if you receive an invoice in June 2012, but you do not pay that invoice until some time in July 2012, you report that payment in the 2012–13 Taxable payments annual report.

• Pay as you go withholding payments

You do not report payments that are required to be reported in a PAYG withholding annual report – for example, payments to:
employees

• workers engaged under a voluntary agreement to withhold
• workers engaged under a labour hire or on-hire arrangement
• contractors who do not quote an ABN

 

If you need any help with meeting your Annual Report obligations, please contact us on 02 4365 0377.