Taxable payments reporting - building and construction industry

Overview

From 1 July 2012, businesses in the building and construction industry need to report the total payments they make to each contractor for building and construction services each year.

You need to report these payments to us on the Taxable payments annual report.

To make it easier to complete the annual report, you may need to check the way you currently record your contractor payment information.

Background

As part of the 2011-12 Federal Budget, the government announced the introduction of taxable payments reporting for businesses in the building and construction industry.

The aim of the system is to improve compliance with tax obligations by those contractors who are currently not doing the right thing.

The information reported about payments made to contractors will be used for our data matching to detect contractors who have not:

• lodged tax returns
• included all their income on tax returns that have been lodged.