Payments and grants you don’t need to report
You don't need to report some payments and grants.
You don’t need to report payments that are:
- for goods only, which includes any form of tangible property
- made to other government entities
- made electronically by
- recurring direct debit
- credit or debit card
- third party payment processors facilitating any of these methods
- for telephone and internet services
- for electricity, water, sewerage or gas
- for transportation of employees, including airfares, taxi fares, train or bus fares or fares for water transport
- for insurance
- for accommodation in commercial premises, for example, rent payments
- for accommodation in a hotel, motel, inn, hostel, boarding house, caravan park or camping ground
- for a lease of goods
- for the creation, grant, transfer, assignment or use of a right under licence, for example, a licence to use a software product
- for financial supplies, for example, bank fees
- for membership to a professional association or body
- for services relating to court or tribunal functions, like payments to jurors, witnesses or advocates for minors.
You should speak to your software developer on how best to exclude these payments from your report; however, we'll accept these types of payments if it imposes an increased administrative burden to exclude them.
Other payments you don't need to report include:
- Unpaid invoices as at 30 June each year, which you should report in the year in which you actually pay them.
- Pay as you go (PAYG) withholding payments. You should report these in a PAYG withholding annual report. Examples include payments made to:
- workers engaged under a voluntary agreement to withhold
- workers engaged under a labour-hire or on-hire arrangement
- contractors who don't quote an ABN.
If amounts are withheld because a contractor didn't quote an ABN and you're required to lodge a Taxable payments annual report, you can report the details in that report instead of the PAYG withholding where ABN not quoted – annual report.
If an ABN isn't provided, you must withhold under the existing PAYG withholding arrangements.
If you’re a local governing body, you don’t need to report grants.
Federal, state and territory government entities don’t need to report grants paid to individuals who don’t have ABNs and grants paid to other government entities.
Government entities need to report payments for services on the Taxable payments annual report each financial year. Some government entities also need to report grants paid to recipients with an ABN.