Taxable payments annual report for Building and construction

Every business that operates in the Building and Construction industry and makes payments to contractors are required to complete and lodge a ‘Taxable Payments Annual Report’.

This report includes the total payments you make to each contractor for building and construction services. You must lodge this report to the ATO every year by 28 August.

What to lodge?

This report includes information such as:

• Total Payments made

• Contractor name

• Address & Phone number

• ABN – If known

• GST paid

What not to lodge?

You do not need to report:

• Payments for materials only

• Unpaid invoices as at 30 June

• Payments to employees

Why do I need to do this report?

Using this information, the ATO will ‘data match’ the amounts you report as paid against what contractors report (in their tax returns) as received.

During this process, the ATO will also find instances of ‘sham contracting’ – where an employer attempts to disguise an employment relationship as an independent contracting arrangement, usually done to avoid the responsibility of employee entitlements like superannuation, insurance and long service leave obligations – and those not meeting the Personal Service Income rules.

How to lodge?

You can lodge either

• Online via Business Portal

• By mailing the paper form directly to the ATO

To make it easier to complete the annual report, you should keep very good records of your contractors in, for example, Xero or MYOB. These videos show you how to do this in Xero and how to do this in MYOB.

Examples of building and construction services

The Building & Construction industry casts a wide net, below is "some" of work activities that satisfy the definition. If you would like the

• architectural work (including drafting and design)

• bricklaying

• cabinet making (including joinery and off-site fabrication for installation at a building site)

• cable laying

• concreting (including formwork, pouring and finishing)

• decorating

• demolition

• earthworks

• electrical work (including electrical inspection)

• engineering

• fencing

• flooring (for example, tiling, laying carpet, laying linoleum, timber flooring, floating floors, resilient flooring, slate tiles, and similar flooring)

• gas plumbing

• glass and glazing work

• hanging or installing doors

• installation of windows

• land clearing

• landscaping construction (including paving and design)

• levelling sites

• painting (internal and external surfaces, including roofs)

• plastering (or other wall and ceiling construction)

• plumbing work (including plumbing inspection)

• project management

• rendering (or other internal or external surface finishes)

• retaining wall construction

• roofing and guttering

• sewage or stormwater drainage system construction

• surveying

• tiling (walls and similar structures)

• timber work

• wallpapering

• waterproofing interior and exterior surfaces

• weatherboarding

If you need any help. Contact us at Dolman Bateman or Buildersbooks if you are looking for an experienced accountant or Bookkeeper.

Disclaimer

This information is not to be relied upon without speaking to your accountant, tax agent or financial adviser depending on the advice.

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