Taxable Payment Reports – Building & Construction Industry

Businesses in the building and construction industry need to report the total payments they make to each contractor for building and construction services each year. You need to report these payments to the  Taxation Office on the Taxable Payments Annual Report due by the 28 August each year.

To make it easier to complete the annual report, you may need to check the way you currently record your contractor payment information.

The information reported about payments made to building and construction contractors is used in the Australian Taxation Office data matching program to detect contractors who have not either:

• lodged tax returns
• included all their income on tax returns that have been lodged.

Work out if you need to report

You need to report to the Taxation Office if all of the following apply:

• you’re a business that is primarily in the building and construction industry
• you make payments to contractors for building and construction services
• you have an Australian Business Number (ABN)

You’re considered to be a business that is primarily in the building and construction industry if any of the following apply:

• in the current financial year, 50% or more of your business income is derived from providing building and construction services
• in the current financial year, 50% or more of your business activity relates to 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.

Details you need to report

For each contractor, you need to report the following details each financial year:

• ABN – if known
• name
• address
• gross amount you paid for the financial year – this is the total amount paid, inclusive of goods and services tax (GST)
• total GST included in the gross amount you paid.

You are required to report the payments you make to contractors in the financial year in which the payments are actually made (cash basis)

The details you need to report are generally contained in the invoices you receive from your contractors.

Please contact your local McFillin & Partner’s tax agent on (07) 32637030 should you have any questions relating to Taxable Payment Reports.