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  • Payments and grants you need to report

    As a government entity, you need to report:

    If you are a local government entity you are not required to report grants.

    You are not required to provide recipients of payments or grants any details of the information reported. However, you can choose to provide them with the details if you wish.

    Find out about:

    Payments, wholly or partly, for services

    You need to report payments you make, wholly or partly for services. This includes payments you make to overseas suppliers and governments.

    If invoices you receive include both goods and services, whether itemised or combined, you report the whole amount of the payment, unless the supply of the services is incidental to the supply of goods.

    Services can include actions that:

    • a business performs
    • may provide assistance to you or help you
    • may be performed on goods or in conjunction with the supply of goods
    • are performed in the course of trade or commerce
    • are generally performed under a contract, but not an employment contract.

    Example : Sunshine Meadows Council

    Sunshine Meadows Council, a local governing body, orders 1,700 black pens from an office supply company and pays an additional fee for delivery. Delivery of the pens constitutes a service. However, since this service has been provided incidentally to the provision of the goods, it does not need to be reported.

    Example: Councillor sitting fees and allowances

    City Council, a local governing body, pays a councillor meeting attendance fees and allowances for services they provided to the council. City Council does not apply the pay as you go (PAYG) withholding provisions to these payments.

    Payments to the councillor are considered to be payments wholly or partly for services and need to be reported in City Council’s taxable payments annual report.

    Example: Property management services

    Department ABC uses the services of an external property manager, Property Fix Services Pty Ltd to undertake various property management functions.

    Payments to Property Fix Services Pty Ltd are considered to be a payment wholly or partly for services and needs to be reported. 

    Example: Property manager engaging contractors

    A. Paying from own funds

    Property Fix Services Pty Ltd (who are paid by Department ABC) engages contractors to provide general maintenance. Property Fix Services Pty Ltd pays the contractors from their own funds. Property Fix P/L is not a government entity and therefore not required to lodge an annual report.

    B. Paying from government entity funds

    Department ABC requests major changes to one of their buildings managed by Property Fix Services Pty Ltd. Department ABC puts funds into a bank account they operate which is available to Property Fix Services Pty Ltd to pay for works and contractors.

    Payments to these contractors are considered to be from Department ABC and need to be reported in the Department's annual report.

    End of example

    See also:

    Grants paid to people or organisations that have an ABN

    Local government entities are not required to report grants.

    You need to report grants paid to people or organisations that have an ABN. This includes grants that are paid to non-profit organisations that have an ABN.

    Grants can take a variety of forms and include subsidies, rebates, sponsorships and similar arrangements.

    Some factors that indicate a transaction is a grant include:

    • grants may be explicitly tied to a government policy or goal
    • grants may be disbursed on a one-off or longer term basis, but aren't provided as ongoing, permanent funding
    • recipients are usually required to submit applications to receive grants
    • grants typically, but do not always, have conditions attached, such as reporting obligations or the requirement to include government logos on marketing materials
    • unlike loans, grants typically don't have to be repaid.

    You can refer to your jurisdiction’s financial management guidance on what grant programs are currently considered to be grants. For example, federal government entities may refer to the Commonwealth Grants Rules and Guidelines.

    If multiple grant payments were made:

    • under the same grant program name, to the same business in a financial year, each payment may be reported separately or added together. If added together, the date of the grant payment can be reported as the end of the relevant financial year (for example, 30 June 2018).
    • under different grant programs to the same business in a financial year, the total of the payments made in the relevant financial year under each program name must be reported separately.

    Example : Small Business Acceleration Program

    A state government Department of Industry administers a small business acceleration program. This program involves a series of grants and rebates paid to small businesses in the state to promote investment in business and support the economy. To be eligible for the program, small businesses must apply to the Department of Industry, carry on a business in the state and meet certain selection criteria.

    Fresh Paws Pty Ltd, a dog washing business located in the state, applies for a grant under the program. As part of its application, Fresh Paws provides its ABN and other documents to meet the conditions of the grant program. Fresh Paws meets the eligibility criteria and is successful in receiving the grant. The Department of Industry must report this grant on the Taxable payments annual report.

    Tech Specialists Pty Ltd, a business teaching computer skills to the elderly located in the state, purchases five tablet computers for use in its business. It applies for a rebate under the program for the cost of the computers. As part of its application, Tech Specialists provides its ABN and includes the invoices as proof of its expense. Tech Specialists meets the eligibility criteria and is successful in receiving the rebate. The Department of Industry must report it on the Taxable payments annual report.

    XYZ Business Pty Ltd receives $1,000 in grants in the financial year ending 30 June 2018 and this amount is made up of $500 from Grant Program A and $500 from Grant Program B, the amounts of $500 must be reported separately under their respective grant program names in the report.

    End of example

    See also:

    Details you need to report

    From 1 July 2017, you need to report the following details for each payee (supplier or grant recipient) each year:

    • ABN (where known)
    • name
    • address
    • gross amount you paid for the financial year – this is the total amount paid, inclusive of goods and services tax (GST)
    • total GST included in the gross amount you paid
    • whether a Statement by a supplier was provided .

    Additionally, if you need to report grants, you will also need to report the:

    • date the grant was paid
    • name of the grant or grant program.

    You're required to report the payments and grants you make in the financial year in which they're actually made (cash basis).

    The details you need to report are generally contained in the invoice you receive or in a grant recipient’s application.

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    Last modified: 23 Nov 2017QC 48890