The Taxable Payments Annual Report
Friday, 10 August 2018
 
Craig Hailston

Overview

  • If you’re in the building and construction industry you may need to lodge a Taxable payments annual report by 28 August.
  • They will detail payments made to contractors who provide you services.
  • Lodging the report can be completed online or in paper form

About the taxable payments annual report

If you’re in the building and construction industry, you need to loge the taxable payments report on an annual basis. The taxable payment annual report notifies the ATO about payments you have made to contractors that have provided services during the financial year.

Take note the annual report deadline is August 28, 2018.

By way of background, the taxable payments reporting system was introduced to address identified compliance related matters caused by contractors within the building and construction industry. These identified matters included GST registration and GST reporting issues, non-lodgement of tax returns and ABN quoting and notification issues.

The details you need to disclose in the report for each contractor includes:

  • Their Australian business number [ABN]
  • Their name and address
  • The gross amount [GST inclusive amount] you paid to them during the financial year

Who needs to report?

If you are running a business in the building and construction industry your will need to lodge a Taxable payments annual report if:

  • You made payments to contractors for building and construction services, and
  • Have an Australian business number [ABN]

Note – the activities consider to be building and construction are extremely broad and capture a wide array of businesses.

The full list of examples can be found on the ATO’s webpage https://www.ato.gov.au/Business/Reports-and-returns/In-detail/Examples-of-building-and-construction-services/

 

Lodging your report

The Taxable payments annual report needs to be lodged on annual basis by 28 August each year. The report itself can be lodged online or via paper form.

Generally most accounting software systems produces the report for you based on payments that you have recorded against each contractor.

Need help

If you need help either completing the report or assistance in determining if you need to lodge a report please do not hesitate to contact Craig Hailston directly at our office.

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