New reporting for businesses in the Building & Construction industry!

From 1st July 2012 businesses in the above industry will need to report the total payments they make to each contractor for any building and construction services.

Who needs to report?

You will need to report if:

• You have a business in the building & construction industry
• You make payments to contractors for building & construction services

For each contractor you make payments to you need to report:

• ABN
• Name
• Address
• Gross amount paid in the financial year (incl GST)
• Total GST included in the amount paid

What type of payments need to be reported?

• Any payment you make to contractors for building & construction services
• If a payment is for materials only, it doesn’t need to be reported
• Payments that are for labour or a combination of labour and materials need to reported

Keeping Records:

It is really important that you keep good records to enable easy identification of contractor payments and the details required to complete the annual report.

Our understanding is that accounting software packages such as Quickbooks & MYOB will be upgraded to assist in the facilitation of  the new requirements. The annual report for 2012/13 will need to be lodged by 21 July 2013, or 28 July 2013 if you lodge quarterly BAS Statements. 

If you need help with deciding if the above new changes affect you, or help with your record keeping to prepare for the changes please contact us in the office at anytime.

Email questions to :         kerryn@allenandco.com.au

Or phone the office on 08 8537 8188.

The attached link gives you a comprehensive rundown of the new reporting system:

www.ato.gov.au/taxablepaymentsreporting