The building and construction industry is an extremely dynamic and challenging type of industry. A successful building and construction business relies on professional accountants/advisers to provide guidance, analytical thinking, and foresight. At Lotus Smart, we understand the challenges faced by the construction business which include dealing with the complex tax and GST laws, a new tax payment reporting system, and cash flow management. We have assisted many businesses in the construction industry to really nail their plans.
As part of the 2011-12 Federal Budget, the Government announced the introduction of taxable payments reporting for businesses in the building and construction industry. A taxable payment reporting system is applicable to those primarily in the building and construction industry and makes payments to contractors for building and construction services. The aim of the new system is to improve compliance with tax obligations by those contractors who are currently not doing the right thing.
The information reported about payments made to contractors will be used by ATO for data matching to detect contractors who have defaulted on their tax obligation. For instance, those who have not:
For each contractor, the following details need to be reported each financial year:
The taxable payments annual report is due on 21 July each year. The first Taxable payments annual report for 2014-15 is due on 21 July 2015. For those lodging activity statements quarterly, they can lodge them by 28 July 2015.
When you need a Dandenong Accounting firm for the building and construction industry, contact our team. We can also help you to put a system in place whereby your accounting software/processes update the report as and when you make a payment to the contractors so that the year-end reporting obligation can be met without much of a hassle.