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Reporting for Building & Construction Industry

Businesses in the building and construction industry are required to report annually to the Australian Taxation Office ('ATO') details of payments made to contractors.

The information reported about payments made to contractors will be used for data matching to find out who is engaging contractors and to detect contractors who have not:

  • Lodged tax returns
  • Included all their income on tax returns that have been lodged

A business is defined as being primarily in the industry if more than 50% of their business income is derived from providing building and construction services in the current financial year, or at least one of the two financial years prior to the current financial year.

Providing services in the building and construction industry is very broadly defined and includes businesses from architects and engineers to project managers and traditional trades. A full list of industries can be found on the ATO website which has been reproduced on the back of this sheet.

Your Brentnalls SA team member can help you determine if you are caught by this reporting regime.

If you fit the criteria you are required to prepare and lodge an Annual report each year by the 21st of July following the end of the financial year. Brentnalls SA as your tax agent has a further extension to lodge until 25 August following the financial year.

Businesses caught by these reporting rules are required to report actual payments made, and are required to include the following details:

  1. The contractor's name;
  2. The contractor's ABN;
  3. The contractor's address (if known);
  4. The total amount paid or credited to the contractor over the income year;
  5. Whether any GST has been charged;
  6. Any other information the Commissioner may require.

For more information, please contact our office.

Examples of Building & Construction Services

This list from the ATO website is a guide only and may not include all businesses affected

 

  •  Architectural work (including drafting and design)
  • Installation of hot water systems
  • Asphalt and bitumen work
  • Installation of pre-fabricated components (for example, kitchens, bathroom components, laundry components, cupboards etc)
  • Block laying
  • Installation of pre-fabricated temperature controlled structures
  • Bricklaying
  • Installation of septic tanks
  • Building of room components (for example, kitchens, bath components,laundry components, cupboards, etc)
  • Installation of solar devices (for example, hot water or electricity connections)
  • Cabinet making (including joinery and offsite fabrication)
  • Installation of tanks
  • Cable laying
  • Installation of window frames
  • Communications construction
  • Installation of windows
  •  Concreting (including formwork, pouring and finishing)
  • Installation or work on devices for heating and cooling
  • Construction and sealing roads
  • Insulation work (walls, roofs, windows, etc)
  • Construction management
  • Internet infrastructure construction
  • Decorating
  • Irrigation system construction
  • Demolition
  • Land clearing
  • Distribution line construction
  • Landscaping construction (including paving and design)
  • Drainage work
  • Levelling sites
  • Dredging
  • Painting (internal and external surfaces, including roofs)
  • Earthworks
  • Pile driving
  • Electrical machinery, heavy, installation (on-site assembly)
  • Pipeline construction
  • Electrical work
  • Plastering (or other wall and ceiling construction)
  • Electrical construction
  • Plumbing work
  • Elevator and escalator installation and work
  • Preparation of site
  • Engineering
  • Project management
  • Equipment rental with operator (if there is no operator, it is just rental of a good and not building and construction activity)
  •  Rendering (or other internal or external surface finishes)
  • Erection of frames
  • Retaining wall construction
  • Erection of scaffolding
  • River work construction
  • Excavation and grading
  • Roofing and guttering
  • Fencing
  • Sewage and stormwater drainage system construction
  • Finishing
  • Stonework
  •  Flood control system construction
  • Surveying
  • Flooring (for example, tiling, laying carpet, laying linoleum, timber flooring, floating floors, resilient flooring, slate, tiles, etc)
  • Swimming pool installation
  • Foundation work
  • Swimming pool, below ground concrete or fibreglass construction
  • Gas plumbing
  • Tiling (walls etc)
  • Glass and glazing work
  • Timber work
  • Hanging or installing doors
  • Wallpapering
  • Installation of fittings
  • Waterproofing interior and exterior surfaces
  • Installation of hard-wired alarm systems (security, fire, smoke, etc)
  • Weatherboarding

If you would like to print this information please click here for PDF format

Disclaimer
The information provided in this information sheet does not constitute advice.  The information is of a general nature only and does not take into account your individual financial situation.  It should not be used, relied upon, or treated as a substitute for specific professional advice.  We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.

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