Are you a business in the building and construction industry? You will probably need to report the total payments you make to each contractor for building and construction services each year.
If you’re a business that is primarily in the building and construction industry, you need to report payments you make to contractors if both of the following apply:
- you make payments to contractors for building and construction services
- you have an Australian Business Number (ABN).
Contractors can be sole traders (individuals), companies, partnerships or trusts.
You need to report these payments to us on the Taxable Payments Annual Report by 28 August each year.
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.
Payments you need to report
Report only payments you make to contractors for building and constructions services.
Contractors can be sole traders (individuals), companies, partnerships or trusts.
If invoices you receive include both labour and materials, whether itemised or combined, you report the whole amount of the payment, unless the labour component is only incidental.
The definition of building and construction services is broad – it includes any of the activities listed below if they are performed on, or in relation 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 (excluding the maintenance, service or repairs of equipment and tools)
- management of building and construction services
- modification
- organisation of building and construction services
- removal
- repair (excluding the service or repairs of equipment and tools)
- site preparation.
Get more details from the ATO website HERE
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