How do I know if I have to report taxable payments for contractors?

If your business is in the building and construction industry, you might have heard of changes in your financial year reporting.

Last year, the government introduced taxable payments reporting to improve tax compliance within the building and construction industry. Businesses are now required to report the total payments made to each contractor for building and construction services to the ATO, dating back from 1 July 2012.

READ: A short guide to taxable payments for EOFY

According to the ATO, the information reported will be used to detect contractors who have not lodged tax returns or included all of their income on tax returns that have been lodged. You will need to lodge a Taxable Payments Annual Report (TPAR) if:

  • You are a business that is primarily in the building and construction industry
  • You make payments to contractors for building and construction services
  • You have an Australian business number (ABN)

If you have any questions, post a comment or read the published comments below to see if your questions have been answered. You need to log in to the blog to comment or use your Facebook account to log in if you have not registered before.

READ: Get your taxable payments done with MYOB

 

Subscribe to have updates delivered to your inbox in the future

A valid email is required
You're also consenting to receive emails from MYOB to help your business, including promotional emails and special offers. You can unsubscribe from these emails at any time. MYOB values your privacy. Please see our Privacy Disclosure Statement for information on how we use, collect and disclose your personal information.