From 1 July 2012, businesses in the building and construction industry must report the total payments they make to contractors on a Taxable Payments Annual Report. This requirement also applies to contractors who pay other contractors for building and construction services.

The due date for the report is 21 July 2013 (28 July 2013 for taxpayers who lodge their BAS quarterly) for such payments made in the period from 1 July 2012 to 30 June 2013.

All payments made to contractors for building and construction services will need to be reported. These activities include alteration, construction, design, improvement, installation, removal, repair and site preparation.

There is no need to report payments made for materials and building supplies only, PAYG withholding payments, payments for private and domestic projects or payments within consolidated groups.

What Needs to be Reported?

The information below will need to be reported.

  • Contractor’s ABN, name and address; and
  • Gross amount paid for the income year (including GST) and the total GST included in this amount.

This information will be noted on all invoices provided by contractors.

Next Steps

Pilot can assist with the recording of contractor payments. Should you wish to know more, please contact Murray Howlett of our Taxation Services Division on (07) 3023 1300.