Do you need to report?
If you run a business that operates primarily in the building and construction industry, you are required to lodge a Taxable Payments Annual Report with the ATO where you have made payments to contractors for building and construction services. Building and construction services covers a wide range of activities including, electrical, plumbing, architectural and decoration. Click here for further information on what occupations and activities are covered.
What information should you report?
The ATO requires taxpayers to report payments to contractors for building and construction services made on or before 30 June in the relevant financial year. Your report must include the contractor’s ABN (if they have one), name and address, the total amount paid to the contractor for the year and the total GST included in that amount.
Do not include payments subject to PAYG withholding or payments for materials only.
Reports are due to be lodged with the ATO on 28 August each year for payments made in the previous financial year.
What if you haven’t lodged your report?
The ATO can impose a penalty where you fail to lodge a report on time. The amount of the penalty is dependent on the size of the business and the period the report is overdue. For Significant Global Entities the penalty can be as high a $525,000. For smaller entities the maximum penalty is $5,250.
Compliance can be complex and time consuming, and once the ATO has given notice of a failure to lodge a report you will be liable for penalties. If you have a 2018 or previous financial year Taxable Payments Annual Report overdue and require assistance with the completion and lodgement of the report, there are several ways in which we can assist you with your reporting obligation, as follows:
- We can work with you to determine which entities within your group need to report, and what information needs to be reported for the various suppliers you engage; and
- We can also prepare and lodge the annual report efficiently on behalf of the reporting entity using our reporting software package, subject to getting the required information.
Please contact us for further information or to discuss how Pitcher Partners can help you.