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  • Statement of tax record

    Businesses and their first tier subcontractors tendering for Commonwealth Government contracts over $4 million (including GST) must obtain a statement of tax record (STR) showing satisfactory engagement with the tax system.

    We recommend you:

    • refer to the tender request documentation to clarify the requirements
    • refer to the Black Economy Procurement Connected Policy (PCP) to understand how these rules affect you
    • apply for an STR early to allow time for processing before the tender closing date
    • keep your tax obligations up to date, including registration, lodgment and payment to ensure you receive a satisfactory STR.

    Find out about:

    See also:

    Who needs an STR?

    You must obtain a satisfactory statement of tax record (STR) if you are either a:

    • business (prime contractor) tendering for Commonwealth Government contracts over $4 million (including GST)
    • first tier subcontractor undertaking work individually valued at over $4 million (including GST) for the prime contractor.

    A prime contractor is the business tendering for or under contract with the Commonwealth Government agency. A first tier subcontractor works directly for the prime contractor.

    You should refer to your tender request documentation to determine your requirements.

    Partnerships, trusts, joint ventures and consolidated groups

    An STR must be requested on behalf of the business tendering for the contract. Different rules apply depending on the nature of the tenderer or subcontractor.

    • Partnerships – an STR must be requested on behalf of the partnership and by each partner that is directly involved in the delivery of the contract. If a new partner becomes directly involved in the delivery of the contract, an STR must be requested within a reasonable time after the partner becomes involved. These STR requirements apply so long as those involved remain partners in the partnership.
    • Trusts – an STR must be requested by the trust and trustee.
    • Joint ventures – an STR must be requested by each party to the joint venture. If the joint venture operator is not a participant of the joint venture, the operator must also request an STR.
    • A subsidiary of a tax consolidated group, or a multiple entry consolidated (MEC) group – an STR must be requested by the subsidiary and the head company.
    • Member of a GST group – an STR must be requested by the group representative and the group member.

    Refer to the tender request documentation to check your requirements.

    Who should not apply for an STR?

    If you are an individual who is not in business, you should not apply for an STR. The criteria for a satisfactory STR only apply to businesses.

    Criteria for a satisfactory STR

    The information supporting the STR is from details on our systems. This may include information provided by you under Australia’s self-assessment regime.

    The Procurement Connected Policy specifies the criteria for a satisfactory STR to be issued:

    • You are up to date with registration requirements, which may include being registered for an Australian business number (ABN), goods and services tax (GST), and having a tax file number (TFN).
      • If you are a tendering business or their first tier subcontractor, this means you will need to be registered for a TFN, ABN and GST when you apply for your STR.
      • If you are applying for an STR as a partner or trustee, you will need a TFN. You may also be required to be registered for an ABN and GST depending on whether you are carrying on a business in your own right.
    • You have lodged at least 90% of your relevant income tax returns, business activity statements (BAS) and fringe benefits tax (FBT) returns that were due in the last four years of operation from the date of your request for an STR. Reasonable delays in lodgments due to extensions agreed to by us will not affect the receipt of a satisfactory STR.
    • You will need to pay any undisputed debt of $10,000 or greater by the due date, or have a payment plan in place with us.

    If you have an Australian tax record of less than four years (for example, if you are a new Australian business or new foreign tenderer) you need to meet additional conditions to obtain a satisfactory STR. This includes making statements relating to:

    • being a non-resident with no tax record or a tax record of less than four years in Australia
    • compliance and payment of Australian and foreign tax obligations
    • no tax-related convictions in the last four years (applicable to Australian and foreign entities).

    See also:

    Unsatisfactory STR

    You will receive a report with your STR. This report is for your information only, and details the elements of the Procurement Connected Policy's criteria you met and/or did not meet.

    If you did not meet the satisfactory criteria, you may be able to take corrective action to bring your tax obligations up to date. You may then reapply for an STR the following day after the corrective action has been recorded in our systems.

    How to correct an unsatisfactory STR

    The following corrective action may assist you with meeting the criteria to obtain a satisfactory STR:

    • Registration – ensure you are up to date with registration requirements which may include registering for an ABN, GST, and a TFN.
    • Outstanding lodgments – ensure you have lodged at least 90% of all income tax returns, FBT returns and BAS that were due in the last four years. If you are not required to lodge a tax return or have nothing to report then you must notify us or you may receive an unsatisfactory STR.
    • Outstanding debt over $10,000 – you can pay the outstanding amount or you may be able to set up a payment plan.

    See also:

    Requesting an STR

    If you are required to obtain or maintain an STR throughout the contract period, you should request it as early as possible. This will allow time for processing before the tender closing date or before expiry of the previous contract.

    How to apply

    You or your registered tax agent can apply for an STR online.

    If you are a:

    • registered tax agent – apply using Online services for agents    
      • select a client – BusinessCommonwealth procurement statement
    • business – apply using the Business Portal    
      • select Online formsCommonwealth procurement statement
    • sole trader – apply using your myGov account linked to the ATO    
      • select TaxManageCommonwealth procurement statement.

    If you are a new business or you do not have access to our online services, you or your tax agent can apply for an STR by phoning:

    • 13 28 66 (for businesses)
    • 13 72 86 (for registered agents).

    After you apply

    When you submit an STR request successfully, your application receipt will be available under the Requests section within 24 hours as confirmation.

    We will generally process your request within four business days and issue you with a:

    • statement of tax record – specifying whether you have met or not met the satisfactory criteria
    • taxpayer report (for your information only) – detailing the elements of the Procurement Connected Policy criteria you met or did not meet.

    If a receipt does not display within 24 hours of submitting the request, or you do not receive the STR within four business days, phone us on:

    • 13 28 66 (for businesses)
    • 13 72 86 (for registered agents).

    If you have requested an STR but have not received it by the tender closing date, refer to your tender request documentation to determine what you can do. You may be able to include a copy of your request receipt with your tender and provide your STR within a certain period after the tender closes.

    Validity

    An STR is valid for:

    • 12 months from the time of issue – if you have an Australian tax record of four or more years
    • six months from the time of issue – if you have an Australian tax record of less than four years.

    Your STR must be valid at the tender closing date. You may need to provide an updated STR during the life of the contract if specified in the terms of your contract.

    See also:

    Authorised by the Australian Government, Canberra.

      Last modified: 06 Aug 2019QC 58371