The aim of the system is to improve compliance with tax obligations by those contractors who are currently not doing the right thing.

 

The information reported about payments made to contractors will be used for data matching to detect contractors who have not lodged tax returns or have not included all their income in the returns that have been lodged.

 

From 1 July 2012, businesses in the building and construction industry need to report to the Australian Taxation Office each year, the total payments they make to each contractor for building and construction services.

Businesses in the industry are encouraged to check how they keep their records to make sure they have the details required for the new Taxable payments annual report.

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

 For more information, refer to Taxable payments reporting - building and construction industry. Or you can call us at Vantage Partners on 02 9894 8884 (Norwest) or 4365 0167 (Erina).