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  • Recipients of government grants and payments

    From 1 July 2017, each year government entities at the federal, state, territory and local levels will need to report the total payments they’ve made to you for providing services.

    Government entities at the federal, state and territory levels will also report grants paid to you, if you have an ABN.

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

    The information that is reported is used for

    • pre-filling purposes to make it easier for individual businesses to lodge their income tax returns
    • data-matching purposes to ensure you comply with your tax obligations including lodging tax returns, reporting all income in lodged tax returns, complying with their GST obligations, and correctly quoting your ABN.

    This information allows us to identify payees that haven't included all their income in their tax return or haven’t lodged tax returns. It also allows us to check compliance with GST obligations.

    If you’re meeting your tax obligations, you don’t need to do anything.

    If you're not meeting your tax obligations and you choose to do nothing, you could be subject to a review or audit and may face penalties.

    Meeting your tax obligations

    Meet your tax obligations by making sure you:

    • 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.
    • 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 your business. Keeping records of your business transactions will help you to report all the income you receive and claim all the deductions you are entitled to.

    Also, check that you've met your other obligations, like lodging your activity statements and paying outstanding amounts by the due date.

    See also:

    If you need help

    We offer a range of tools and services to help make it easier for small businesses to get your tax and super right the first time.

    If you're having difficulty paying your tax, we encourage you to contact us as early as possible.

    Next steps:

    Last modified: 30 Mar 2017QC 48893