Payments Reporting for Building & Construction Industries
The new financial year will bring some changes to the payments reporting systems for the building and construction industries you need to be aware of. As of July 2012, businesses in the building and construction industry will be required to report to the ATO on the payments they make to subcontractors.
Unfortunately, the actions of those not doing the right thing has imposed obligations on others who do. According to the ATO, the aim of the extra work required is to "improve compliance with tax obligations by those contractors who are currently not doing the right thing".
For those of you affected by these changes, you will not be required to lodge any report with the ATO until July 2013. However, the way you currently record your contractor information may need to change from 1 July 2012, so as to make it easier to fill out the report.
In July 2013, for each subcontractor you pay you will need to advise the ATO the following:
- ABN, if known
- name
- address
- gross amount you paid for the financial year (this is the total paid including GST)
- total GST included in the gross amount you paid.
For some, the systems they have will already make providing this information less of a headache. However, others may need to make some changes soon, so it is not such a huge job when the time comes to give the ATO a helping hand.
If you would like further information on how the above changes may affect you and your business, please call Stature ARW Accounting for on 02 8256 2100 or visit our website www.staturearw.com.au
Source: http://www.ato.gov.au/businesses/content.aspx?menuid=0&doc=/content/00313486.htm&page=3&H3
