Taxable Payments Annual Reporting – Building & Construction Industry

by | Aug 5, 2015 | Accounting News

Businesses in the building and construction industry have an obligation to report the total payments they make to each contractor for building and construction services each financial year. These payments need to report to ATO using the Taxable Payment Annual Report (TPAR – a special form provided by the ATO).

You’re considered to be a business that is primarily in the building and construction industry if any of the following apply:

  • 50% or more of business income is derived from providing building and construction services;
  • 50% or more of business activity relates to building and construction services;
  • In the financial year immediately before the current financial year, 50% or more of business income was derived from providing building and construction services;

When to report

The TPAR is due by 28 August each financial year. This is the third year that a TPAR has been required to be lodged by the ATO. It was introduced in the 2013 financial year.

What payments need to be reported

Building and construction services include the following activities performed on, or relate to any part of a building, structure, works, surface or sub-surface:

Alteration Assembly Construction Demolition
Design Destruction Dismantling Erection
Excavation Finishing Improvement Installation
Maintenance Modification Removal Repair
Site preparation
Organisation of building and construction services
Management of building and construction services (i.e. project management, contract administration)

 

Payments that don’t need to be reported

  • Payments for materials only;
  • Unpaid invoices at 30 June each financial year;
  • Payments to private and domestic projects;
  • Payments within consolidated group;
  • Payments that are subject to PAYG withholding requirements
  1. payments to employees;
  2. contractors who do not quote an ABN;
  3. workers engaged under a labour-hire or on-hire arrangement;
  4. workers engaged under a voluntary agreement to withhold;


Information that needs to be reported

  • ABN;
  • Name of contractor;
  • Contractor Address;
  • Gross amount include GST paid for the financial year;
  • Total GST included in the gross amount paid;

If you need any help with the completion of your Taxable Payments Annual Reporting, contact our team of accountants at The Quinn Group on (02) 9223 9166 or submit an online enquiry.