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  • Commonwealth Government contracts - what you need to know

    If your client is applying for a tender valued over $4 million (including GST) that is subject to the Commonwealth Procurement Rules, they must obtain a Statement of tax record (STR) showing satisfactory engagement from us.

    Some businesses are losing out on Commonwealth Government contracts because they don’t provide correct documents such as the STR.

    If you have clients tendering for Commonwealth Government contracts, it’s worth taking a few minutes to understand the STR requirements so that they are not excluded from the tender process by ensuring they provide the correct documents.

    Here is what you can do to ensure your client is successful in receiving a satisfactory STR:

    • Apply for an STR early to allow time for processing before tender closing dates or previous contract expiry dates.
    • Ensure that their registration, lodgment and payment obligations are up to date.
    • Be aware that more than one STR may need to be provided, depending on the nature of the business. For example, some business structures, like partnerships and trusts, require more than one STR.

    If the STR has an unsatisfactory outcome, corrective action can be taken to bring your client’s tax obligations up to date. You may then reapply for an STR the day after the corrective action is recorded on ATO systems.

    For more information, go to Statement of tax record.

    Last modified: 09 Nov 2022QC 70828