Taxable Payment Reports – How to Stay Compliant with the ATO

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The ATO is clamping down on Contractor Payments particularly in the Building and Construction, Cleaning and Courier industries. In this video learn how they are doing this and how to stay compliant.

At the time of recording, it is mandatory for businesses in the Building and Construction, Cleaning and Courier businesses to report on all payments you make to all of your contractors. The info you need to report includes the ABN, name, address and total amount you paid them. The main thing to look out for here is the GST component, we have seen the ATO target contractors who put GST on their Invoices but aren’t actually registered, so its worthwhile checking your subbies ABN details on the Australian Business Register. Most good accounting packages will have a Taxable Payments Report built into the program, but it is always important to review the info to make sure it is accurate. These reports need to be lodged by 28 August every year.

The ATO are reviewing this info to ensure that all contractors are lodging their returns correctly. So to avoid a friendly call from the taxman, we highly recommend staying on top of these reports. And be sure to get some advice from your accountant if you’re unsure about your reporting obligations.

#buildingandconstruction #taxation #ato