• Taxable payments reporting

    How to obtain this publication

    You can download Taxable payments reporting – building and construction industry (NAT 74162, 311KB) in Portable Document Format (PDF).

    To obtain a printed copy of this publication:

    • use our automated self-help publications ordering service at any time. You need to know the full title of the publication to use this service
    • phone our Publications Distribution Service on 1300 720 092. You can speak to an operator between 8.00am and 6.00pm Monday to Friday. Before you phone, check whether there are other publications you may need - this will save you time and help us. For each publication you order, you need the full title.

    Do you run a business in the building and construction industry?

    If you run a business in the building and construction industry, you need to report the total payments you 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.

    We will use the information you report about payments you made to contractors to detect contractors who have not:

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

    To make it easier to complete the Taxable payments annual report you may need to check the way you record your contractor information.

    Who needs to report?

    You need to report if all of the following apply:

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

    What do you need to report?

    You need to report the following information about each contractor:

    • their ABN, if known
    • their name
    • their address
    • the gross amount you paid them for the financial year (this is the total amount paid inclusive of GST)
    • the total GST included in the gross amount you paid.

    You can find this information in the invoices you received from your contractors.

    Attention

    A contractor can be a sole trader (individual), partnership, company or trust.

    End of attention

    If you keep your records on paper, you can download and print a blank worksheet to help you record the information you need to complete the report.

    It is for your records only – do not send the worksheet to us.

    Payments you need to report

    You need to report the total payments you make to each contractor for building and construction services that are performed on, or in relation to, any part of a building, structure, works, surface or sub-surface.

    The definition of building and construction services is broad. It includes services such as architectural work (including drafting and design), certification, decorating (including painting), engineering, landscaping and construction, project management and surveying.

    Example

    RS Electrical Pty Ltd is a business that performs work related to the design, installation and maintenance of electrical systems. The company engaged James to inspect the electrical work on a building project and provide electrical certification. They need to report the payments they make to James.

    More examples

    End of example
    Attention

    Where your payment is for both labour and materials, you report the whole amount.

    End of attention

    Payments you do not report

    Do not report:

    • payments for materials only
    • any invoices that are unpaid at 30 June each year
    • payments which must be reported in a Pay as you go (PAYG) withholding payment summary annual report, such as payments to employees
    • payments for private and domestic projects - for example, payments you make for building or renovating your own home.

    When do you report?

    The Taxable payments annual report is due 28 August each year.

    How do you lodge your report?

    You can lodge your Taxable payments annual report online or on paper.

    Online

    The easiest and most secure way to lodge your report is online.

    You can lodge your report online using the Business Portal, Tax Agent Portal, BAS Agent Portal or Standard Business Reporting (SBR).

    To lodge online you will need the following:

    • an ABN
    • an AUSkey - to protect your security and privacy when dealing with us online
    • accounting software that meets our requirements.
    Attention

    Do you have an AUSKey for your ABN?

    If you do not have an AUSkey for your ABN, you can register for one at auskey.abr.gov.auExternal Link

    End of attention

    Watch

    Watch a short video about lodging your Taxable payments annual report online.

     

    Duration 3:39. A transcript of How to lodge your taxable payments annual report online is also available.

    End of watch

    Paper

    To lodge a paper form, complete and send the Taxable payments annual report (NAT 74109) to us.

    If you have more than nine contractors, you will need to order additional forms. You cannot use forms that you print or photocopy yourself - you must use a form that we have printed.

    You can obtain copies of the printed form from our online publications ordering service at ato.gov.au/onlineordering or by phoning 1300 720 092.

    View a sample of the form.

    Find out more

    Taxable payments reporting for:

    • a list of activities and occupations that are considered to be building and construction services
    • examples of situations where you need to report
    • exclusions from reporting requirements
    • a sample of the report form
    • a blank worksheet to help you record payments you make to contractors
    • information about how to lodge your report.

    For all enquiries, phone us on 13 28 66 between 8.00am and 6.00pm, Monday to Friday.

    If you do not speak English well and need help from the ATO, phone the Translating and Interpreting Service on 13 14 50.

    If you are deaf, or have a hearing or speech impairment, phone the ATO through the National Relay Service (NRS) on the numbers listed below:

    • TTY users, phone 13 36 77 and ask for the ATO number you need
    • Speak and Listen (speech-to-speech relay) users, phone 1300 555 727 and ask for the ATO number you need
    • internet relay users, connect to the NRS on relayservice.com.auExternal Link and ask for the ATO number you need.
    End of find out more
      Last modified: 26 Mar 2015QC 25973