Contractor Taxable Payments Annual Reporting

From 1 July 2012, businesses in the building and construction industry need to report the total payments they make to each subcontractor for building and construction services during that year.

You need to report these payments on the Taxable Payments Annual Report and it must be sent to the ATO by 28 August each year.

To make it easier to complete the annual report, you may need to check the way you currently record your contractor payment information as in the report there are specific details that need to be provided.

If you require your accountant to prepare the annual report on your behalf you will need to provide details of the contractors including

  1. Full Business Name
  2. ABN
  3. contact phone number.

Contractors can be sole traders (individuals), companies, partnerships or trusts.

Activities and services that are considered to be building and construction are broad. Some examples include architectural work (including drafting and design), certification, decorating (including painting), engineering, landscaping and construction, project management and surveying.

The information that is reported is used for

  • pre-filling purposes to make it easier for individual contractors to lodge their income tax returns
  • data-matching purposes to ensure contractors comply with their tax obligations including lodging their tax returns, reporting all their income in lodged tax returns, complying with their GST obligations, and quoting their correct ABN.

For more information about this report click:

Building & Construction Taxable Payments Reports