Since 2012 the government has required that all businesses in the building and construction industry report the payments they make to each contractor for building and construction services.
The ATO uses this information as a cross matching services to ensure all contractors have lodged a tax return and included all their income on these returns.
What does this mean for you?
It means that if you operate in the building industry, including plumbers and electricians, you need to report all contractor payments for any work completed in the 2013-14 year to the ATO by 21st July, 2014.
You will need to provide your details and the contractors details including their ABN, name, address, gross amount paid (only include amounts actually paid not any amounts still owing) and the GST.
Some accounting programs have a function that will allow you to create a report that can be lodged electronically to the ATO.
If you are using an accounting program, like Reckon, Xero or MYOB, make sure you have all the supplier information filled out for your contractors.
The ATO has made a fact sheet for the reporting which may help you to understand your obligations.
If you would like any further information or help completing the report please feel free to give as a call anytime on (03) 5032 9422