The Federal Government has released draft regulations increasing the reporting requirements for businesses in the construction and building industry. Under the proposed regulations businesses will be required to report details of payments made to all contractors providing building and construction services.
The regulations are aimed at addressing significant levels of non-compliance identified amongst contractors in the building and construction industry. Interested parties have until 20 January 2012 to respond to the draft regulations.
If passed in their current format the regulations will take effect from 1 July 2012.It will be important for affected businesses to ensure their financial records and accounting systems are able to produce the detail of the information required.
We recommend those businesses review their existing systems as the level of detail required will be significant (including ABN, amounts paid and address of contractors to which payments are made).
We will continue to monitor the progress of these changes and provide you with further updates as to the final format the reporting requirements will take.
Should you have any questions concerning the impact of these changes please contact Murray Howlett of our Taxation Services Division on (07) 3023 1300.