Are You in the Building & Construction Industry?
The first taxable payments annual report for clients in the building and construction industry are due with the ATO by August 25, 2013 if you are lodging through our office. For other businesses who paid contractors for building and construction services in the 2012/2013 financial year the due date of this report was July 21, 2013.
Businesses need to submit the taxable payments annual report if they:
- Are in the building and construction industry
- Make payments to contractors for building and construction services (and)
- Have an Australian business number (ABN)
The ATO considers you a part of the building and construction industry if:
- 50% of more of your business activities in the current financial year relates to building and construction services.
- 50% or more of your business income in the current financial year is derived from providing 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.
You need to report payments you make to contractors for building and construction services including 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:
|Construction||Improvement||Management of building and construction services|
|Demolition||Installation||Organisation of building and construction services|
The report has to include the following details for each contractor:
- Name and address
- Total gross amount paid
- Total GST included
For more information on this report and how to complete it and any exclusions go to https://www.ato.gov.au/Forms/Taxable-payments-annual-report-instructions-and-form/
Clearly, record keeping is critical and best done regularly. Your accounting software should have the functionality to produce the report and if you use any of these programs more instructions are available from these links:
Make sure the software program you use for your business is able to record these important details.