Contractors in the building and construction industry
Businesses in the building and construction industry have to report to us the total amount they've paid you each year for building and construction services on the Taxable payments annual report. This information allows us to identify those contractors who have:
- not included all their income on their tax return
- not lodged tax returns or activity statements
- not registered for GST where they are required to do so
- quoted the wrong ABN on their invoices
There is no requirement for businesses to provide their contractors with details of the information reported. However, contractors may request this information from them. To assist them, we have developed a payee information statement.
Note: if you are meeting your tax obligations, you don't need to do anything.
If you are not meeting your tax obligations, and you choose to do nothing, you could be subject to a review or audit and may face penalties.
How to check you are meeting your obligations
- Lodge your tax return by the due date.
- Include all your income in your tax return.
- Lodge any tax returns for previous financial years as soon as possible.
- Lodge your activity statements by the due date.
- Ensure you quote your correct and current ABN on your invoices.
- Consider making a voluntary disclosure if you think you've made a mistake on a previously lodged tax return. If you voluntarily advise us of any errors or omissions, any penalties that apply may be reduced.
- Keep records of all the income you receive and payments you make in relation to providing building and construction services. Keeping records of your business transactions helps you in reporting all the income you receive, and claiming all the deductions you are entitled to.
- Check that you've met your other tax obligations.
If you need help
Contact us if you have a tax debt and you can't pay your tax debt on time.
If you pay other contractors
If you pay other contractors for building and construction services, you may also be required to report these payments to us each year. A contractor can be a sole trader (individual), partnership, company or trust.
Webinars (online seminars)
A 60-minute webinar session will outline the requirements of taxable payments reporting. All you will need is a computer with internet access to register and join in a session.