As part of the Australian Taxation Office's crack down on the Building and Construction industry all businesses within the industry that pay other businesses as contractors or subcontractors directly, must lodge an annual taxable payments report by 28 August each year.

The form essentially reports payments received by different Australian Businesses within the Building and Construction industry. The Australian Taxation Office then records this information and uses it to data match against information lodged by contractors and subcontractors on their annual income tax returns.

Importantly, to meet the obligations, the following information must be retained by businesses who operate in the industry:

1. Payee details including ABN, contact name, contact number &  mailing address

2. Total tax withheld where ABN was not quoted

3. Total GST included in the gross amount paid; and

4. Gross amount paid to the payee (ABN holder)

This form is now a compulsory requirement for Australian Businesses in the Building and Construction industry. To find out if your business is liable to lodge an annual taxable payments report or to get assistance with the preparation and lodgement of the report contact your GMD accounting team member.