If you run a business in the building and construction industry, you need to report the total payments you make to each contractor for building and construction services each year to the ATO via the Taxable payments annual report.
A contractor can be a sole trader (individual), partnership, company or trust.
The definition of building and construction services is broad. It includes services such as architectural work (including drafting and design), certification, decorating (including painting), engineering, landscaping and construction, project management and surveying.
You need to report the following information about each contractor:
- their ABN, if known
- their name
- their address
- the total GST included in the gross amount you paid for the financial year
Here are some simple tips to get it right:
- Check your contractor’s ABN and GST registration details as you deal with them through the year to make sure you correctly report them. To do this – use the ABN lookup tool or the ATO app.
- AUSkey and business software that can generate the annual report.
- If you’re no longer in the building and construction industry or didn’t pay contractors for the year, advise the ATO accordingly.
And if you have any questions about your reporting, feel free to reach out anytime.