More reporting required for the building and construction industry from July 2012.

From 1 July 2012 businesses in the building and construction industry will be required to report details of payments they make to each contractor providing them with building and construction services. These rules apply to any business in the building and construction industry that makes payments to contractors for building and construction services. The contractor can be an individual, partnership, company or trust.

To satisfy the reporting requirements, you will need to report the following details each financial year for each contractor that you make payments to:

• ABN
• Name
• Address
• Gross amount paid for financial year
• GST included in amount paid

You will be required to complete a Taxable Payments Annual Report at the end of the year and this will be due for lodgement by 21 July each year. The first report will be due on 21 July 2013 covering payments made during the 2012/113 financial year.
 
We would recommend that you consider implementing a system to record this information monthly or quarterly so that you are progressively recording this information. You may want to use your current computer program or set up a separate system to record this.

The Tax Office website has a number of publications on this which can provide you with further information.

If you would like to discuss this or require assistance to set up your recording system, please contact us.