From 1 July 2012, businesses in the building industry will have to report to the ATO the total amount they have paid each year for building and construction services.
The ATO will compare this information with the income the contractor has included on their tax return.
So, if you are a contractor in the building and construction industry, the information to be reported each year by the business that paid you will be:
– Your Australian business number (ABN)
– Your name
– Your address
– Total amount paid to you including any GST
You will have to make sure you:
– Lodge your 2012-13 tax return by the due date and include all your income
– Lodge any prior years’ tax returns as soon as possible
– Consider making a voluntary disclosure if you think you have made a mistake in a previously lodged tax return. Where you voluntarily advise the ATO of any errors or omissions, any penalties that apply may be reduced.
If your tax obligations are not up to date or you choose to do nothing, you could be subject to a review or audit and may face penalties.
Do you pay building and construction contractors?
If you pay contractors for building and construction services you will also have reporting requirements.
You can find out more at the ATO.