If you believe these reporting changes do not apply to you, we apologise for taking up your valuable time. If you are unsure or believe that they do apply, please read on………………..
What is it all about?
Recently you would have heard that the ATO requires those in the building and construction industry to report the total payments you make to each contractor for building and construction services each year.
The definition of building and construction services is very wide and includes those activities typically associated with building as well as such things as architectural work, decorating, installation of fittings, landscaping and surveying.
You have to report all payments made to your contractors for these services for the year, except for the following:-
- payments for materials only
- invoices that are unpaid at year end. You only report actual payments made.
- payments to actual employees, workers engaged under a voluntary agreement or engaged under a labour hire arrangement.
- payments to contractors who do not quote an ABN (this is because you should be withholding tax when you make payments)
The ATO has advised that if you are unable to easily separate payments made for materials only without significant administrative effort, you can report all the payments you make to this contractor.
What do you have to do now?
You should have received a form from the ATO in relation to reporting your obligations. If you did not receive your form, please contact us and we can provide you with one.
You now need to complete the form with the following information for each contractor
- ABN, if know
- gross amount you paid for the financial year (this is the total amount paid inclusive of GST)
- total GST included in the gross amount you paid.
This form must be lodged with the ATO by the 21st of July 2013. This year, if you lodge your BAS quarterly, you can lodge the form by the 28th of July 2013. If you believe you do not have to lodge this form, you need to contact us so that we can advise the ATO you do not have to lodge a form for the year.
The form can either be posted to the ATO, lodged electronically if your software is compatible, or forwarded to us for lodgement via our portal system.
How do I complete this form?
Please click on the link below to take you to detailed instructions for your software/ reporting method.
MYOB – Card system used
MYOB – Card system not used
Quickbooks – Card system used
Quickbooks – Card system not used
Banklink & Other
Can we help?
As this is the first year of these reports, we expect there may be some issues with completing the forms. If PRT can provide assistance in any way, please do not hesitate to contact either your PRT partner or any one of our helpful staff.