From 1 July 2012, you need to report if all of the following apply:
· You are a business that is primarily in the uilding and construction industry
· You make payments to contractors for building and construction services
· You have an Australian business number (ABN)
You are considered to be a business that is primarily in the building and construction industry if any of the following apply:
· In the current financial year, 50% or more of your business income is derived from providing building and construction services
· In the current financial year, 50% or more of your business activity relates to building and construction services
· In the financial year immediately before the current financial year, 50%
or more of your business income was derived from providing building and construction services
For each contractor, you need to report the following details each financial year:
· ABN, if known
· Name
· Address
· Gross amount you paid for the financial year (this is the total amount paid inclusive of GST)
· Total GST included in the gross amount you paid
The details you need to report will generally be contained in the invoices you receive from your contractors.
Building and construction services include any of the activities listed below if they are performed on, or in relation to, any part of a building, structure, works, surface or sub-surface:
· Alteration
· Assembly
· Construction
· Demolition
· Design
· Destruction
· Dismantling
· Erection
· Excavation
· Finishing
· Improvement
· Installation
· Maintenance
· Management of building and construction services
· Modification
· Organisation of building and construction services
· Removal
· Repair
· Site preparation
Your Taxable payments annual report is due 21 July each year.
The first Taxable payments annual report is due 21 July 2013 for payments made in the 2012-13 financial year. In this financial year, if you lodge your activity statement quarterly, you can lodge by 28 July 2013.
Mike Alvarez, a CPA and Registered Tax Agent, is the director of QA Audit and Tax Services Pty Ltd, a CPA Practice, telephone 02 9628 2933.
