Important Changes for Contractors

Thursday, Jun 14, 2012

Building and construction industry employers need to make the necessary adjustments to how they record their payments to contractors.

Building and construction industry employers need to make the necessary adjustments to how they record their payments to contractors.

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:

  • ABN, name, address
  • Total gross amount they paid for 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 returns.

The first taxable payments annual report is due 21 July 2013 for payments made in the 2012-13 financial year.

Click on the following link for more information

Reportable Payments to Contractors