Contractor Payments Reporting Requirements

A "Taxable Payments Annual Report" is now required by businesses in the building and construction industry making payments to contractors.

You are required to report if:
Your business operates primarily within the building and construction industry.
Make payments to contractors for building and construction services.
You have an Australian Business Number.

A business is primarily in the building and construction industry if one or more of the following apply:
1. In 2013 greater than 50% of business income  is earned from building and construction services.
2. In 2013 greater than 50% of your business activity is related to building and construction services.
3. In the year immediately prior to the current (2012) year greater than 50% of your business income was generated from providing building and construction services.

What is reported?
1. ABN, name and address.
2. Gross payments including GST.
3. GST included in each gross payment.

Building and construction services include:
1. Alteration assembly and construction.
2. Demolition design and destruction.
3. Dismantling erection and excavation.
4. Finishing improvement and installation.
5. Maintenance and management of building and construction services.
6. Modification and organisation of building and construction services.
7. Removal repair and site preparation.

What not to report
1. Payments to contractors purely for materials.
2. Private and domestic payments e.g. if you are a home owner.
3. Any payments made that would have otherwise been reported in a PAYG withholding report.

Lodging the report to the Australian Taxation Office
For quarterly BAS payers the report will be due to be lodged by 28th July after the year end.
The report may be lodged electronically by your tax agent or by paper form.
Details are available:
http://www.ato.gov.au/businesses - taxable payments reporting - building and construction industry.