TAXABLE PAYMENTS REPORTING IN THE BUILDING AND CONSTRUCTION INDUSTRY

Back to News
ATO mattersPayrollTax time / planning

Taxable payments reporting in the construction and building industry – 

taxable payment reporting in the building and construction industry

Businesses in the building and construction industry who pay contractors for constructions services must report the amount of payment to the ATO by 28th August each year.

These taxable payments need to be reported on a specific form called a Taxable Payments Annual Report. The information reported includes:

  •  Name of the contractor
  • ABN of the contractor
  • Address of the contractor
  • Total amount paid, including GST, for the financial year
  • Total GST included in the payment

safety hatThe ATO state that taxable payments reporting aims to improve tax compliance by those contractors that aren’t doing the right thing. In other words, to catch those contractors who are currently “flying under the radar”. The information is used to determine those contractors that haven’t lodged tax returns and to match the income of those who have.

Businesses must remember that they have an obligation to withhold 46.5% of payments made to contractors, if the contractor fails to give them an ABN. Further, the business should search the ABN to ensure it is current and correct. This can be done at www.abr.business.gov.au

The ATO continue to push hard on this issue. If you’re an employer, be sure to have the administrative systems to gather all your necessary information. If you’re a contractor, be sure your ABN is current, your tax returns are up to date and you declare all your income.

For more information on the reporting taxable payments check out the ATO site

 

If you require any assistance, Optima Partners are always happy to assist.

Enrico De Pietro

Enrico De Pietro

Director – Optima Partners

Optima Partners offers support to all businesses. Whatever your requirements

For more information on how Optima Partners’ services can help your business, contact the team at info@optimapartners.com.au for a consultation.

Latest News

No silver bullet: Plumbing Bros founder discusses expansion
Plumbing Bros Director and CEO James Riddle is no stranger to adversity in business. Despite numerous...
Controversial super tax remains in limbo
The Treasury Laws Amendment Bill 2023, containing the controversial Division 296 tax on superannuation balances...
Key Dates – March 2025
21 March : Lodgement and payment of February 2025 monthly business activity statement. 31...
Buying a business: Seven best practices
Buying a business is great option for entrepreneurs looking to break into the market, and...
2024 -25 Fringe Benefits Tax Year: Preparing for the 21 May Deadline
March 31 marks the end of the 2024-25 Fringe Benefits Tax (FBT) year, meaning that...
Increased Cost of Tax Debt: ATO Crackdown Continues
From July 1, 2025, the general interest charge (GIC) and shortfall interest charge (SIC) will...
SMSF Investment rules and options: A Comprehensive Guide
A self-managed super fund (SMSF) is a popular method of superannuation management that allows for...
Choosing the Best Client Accounting Software for Your Business
Good client accounting software is essential for business growth and improvement. The right software will...
Key Dates: February 2025
Here a few important dates to pencil into your February calendar. February 21: Lodgement...
15% Withholding on Property Sales: New Tax Rule for Australian Sellers in 2025
As of January 1, 2025, all Australian residents for tax purposes must provide a clearance...