• Taxable payments annual reporting

    We may send a letter about taxable payments annual reporting if we receive information that you received payments for building and construction services provided during the year and you did not include this business income in your tax return.

    Since 1 July 2012, businesses in the building and construction industry are required to report payments made to contractors for building and construction services each year. They do this by lodging a Taxable payments annual report.

    Understanding your taxable payments annual report schedule

    Below is a sample schedule. Keep in mind that your schedule will contain your details and may not look exactly like this one.

    Sample taxable payments annual report schedule

    Income schedule
    for the year ended 30 June 2015

    Tax return item and description

    Amount you declared

    Discrepancy

    Proposed adjustment amount

    Assessable government industry payment

    $0

    $0

    $0

    Other gross income

    $20,000

    $153,000

    $173,000

    Total income

    $20,000

    $153,000

    $173,000

    Payer ABN

    Payer name

    Payee name reported to us

    Amount

    00 123 456 789

    Payer

    Payee name

    $123,000

    00 123 456 790

    Payer

    Payee name

    $50,000

    The following definitions will help you understand your schedule:

    • Tax return item and description – The relevant item on your tax return.
    • Amount you declared – The amount you declared against each applicable item on your tax return.
    • Discrepancy – The difference between the amount you declared on your tax return and the amount that has been reported to us.
    • Proposed adjustment amount – The amount we propose to include on your tax return.
    • Payer ABN – The ABN of the reporting payer for each source of income, as reported to us.
    • Payer name – The name of the reporting payer for each source of income, as reported to us.
    • Payee name reported to us – The name of the recipient of for each source of income, as reported to us
    • Amount – The amount of income reported to us.

    Legislation requires businesses in the building and construction industry to provide an annual report on payments they have made to contractors during the year. If you do not agree with the information reported by the payer and they are known to you, you can contact them to verify the amounts reported.

    Alternatively, contact us to discuss any suspected reporting errors and we will endeavour to follow up with the payer on your behalf.

    Next step:

    See also:

    Last modified: 11 Feb 2016QC 43498