ATO - Taxable Payments Annual Report

20-Jun-2017
If you are a business primarily in the Building and Construction Industry, you are required to report payments you make to Contractors if both of the following apply:

1) You make payments to Contractors for Building and Construction Services
2) You have an Australian Business Number (ABN)


To be primarily in the Building and Construction Industry,

50% or more of your Business Income is earned from providing Building and Construction Services, or
50% or more of your Business Activity relates to Building and Construction Services in the current year


OR

50% or more of your Business Income was earned from providing Building and Construction Services in the financial year immediately before the current financial year

If you meet the above definition, please ensure that you lodge your Taxable Payments Annual Report on or before 28th of August or penalties may be imposed by the ATO. The report can be lodged by paper or electronically if your software has been set up properly, such as Xero or MYOB.

In light of the latest budget, the Taxable Payments Reporting System will be extended to Contractors in the Courier and Cleaning Industries as of 1 July 2018.

If you are in the Courier and Cleaning Industries, we would strongly advise you to obtain software that can help you keep records of all payments made to contractors now so that there will be no dramas when it eventually becomes a requirement from 1 July 2018. 

If you are unsure whether you are required to lodge it, please feel free to contact us on (02) 9370 0400.


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