Taxable payments reporting – building and construction industry
Businesses in the building and construction industry need to report the total payments they make to each contractor for building and construction services each year. You need to report these payments to us on the Taxable payments annual report. • From 1 July 2012, businesses in the building and construction industry need to report the total payments they make to each contractor for building and construction services each year.
Businesses in the building and construction industry need to report the total payments they make to each contractor for building and construction services each year.
You need to report these payments to us on the Taxable payments annual report.
- From 1 July 2012, businesses in the building and construction industry need to report the total payments they make to each contractor for building and construction services each year.
To make it easier to complete the annual report, you may need to check the way you currently record your contractor payment information.
The information reported about payments made to building and construction contractors is used in our data matching program to detect contractors who have not either:
- lodged tax returns
- included all their income on tax returns that have been lodged.
Reporting
Work out if you need to report
You need to report if all of the following apply:
- you’re a business that is primarily in the building and construction industry
- you make payments to contractors for building and construction services
- you have an Australian business number (ABN).
You’re considered to be a business that is primarily in the building and construction industry if any of the following apply:
- in the current financial year, 50% or more of your business income is derived from providing building and construction services
- in the current financial year, 50% or more of your business activity relates to building and construction services
- in the financial year immediately before the current financial year, 50% or more of your business income was derived from providing building and construction services.
Forms and tools
Taxable payments annual report
If you want to lodge a paper form, you must complete and send the
Taxable payments annual report (NAT 74109) to us. You can’t use copies of this form that you’ve printed or photocopied yourself – you must use forms that we’ve printed.
You can obtain an annual report form by noting the full title or NAT number and either:
The paper form allows you to report up to nine contractors. If you have more than nine contractors, you will need to order additional forms.
A ‘sample only’ copy of the
Taxable payments annual report is available. This is a sample form only – you can’t use this to prepare your annual report.
Avoid common mistakes
Here are some tips to help you save time and get your annual report lodged correctly.
- Complete your details ensuring that you are providing the correct name and ABN of your business.
- Fill in your contact details so if we have any questions, we can check these with you quickly and easily over the phone.
- Check your contractors’ details (ABN, name, address) to confirm that they are correct. It is a good idea to check their ABN by using ABN LookupExternal Link
- When you receive an invoice, check that the ABN on the invoice matches the ABN on your record for that contractor. Ensure that you create a new contractor record if necessary. Where a contractor’s ABN changed during the year, you will need to include the two payee records in your annual report.
- Check that the right amounts are at the right labels. Do not include cents or strike out boxes or add zeros to boxes that are not used.
- For example, if the total amount you paid a contractor during the year was $13,579.20, ignore the cents and show the amount as follows:
- Only complete the Total tax withheld where ABN not quoted field if you have withheld an amount because a contractor did not provide you with their ABN. Do not include any other amounts in this field. If you did not withhold, leave this field blank
- For each contractor, include the total amount of GST you paid for the year in the Total GST paid field. This will show how much GST they charged on their invoices. You can check if the contractor is registered for GST by using ABN LookupExternal Link on our website or via the ATO app.
- Only report details of contractors who provided you with building and construction services.
- Refer to the list of occupation and work activities that are considered to be building and construction services.
- You cannot lodge the report in formats such as photocopied forms, scanned images of forms, screen prints, spreadsheets, word processing files (for example .pdf, .doc. .xls, .jpg, .tif) or on electronic media (such as CD-ROM, DVD, USB, floppy or zip disk). These formats are not acceptable for this annual report.
See also:
Worksheet
You can print our worksheet to help you record details of payments you make to contractors for their building and construction services, particularly if you keep manual records. You can use the details you record in the worksheet to help you complete your
Taxable payments annual report. The worksheet is for your records only – do not send this to us.
For a copy of the worksheet, refer to
Taxable payments reporting – worksheetThis link will download a file (PDF, 178KB).
Examples of building and construction services
Below is a list of occupations and work activities that satisfy the definition of building and construction services:
- architectural work (including drafting and design)
- asphalt and bitumen work
- assembly, installation or erection of pre-fabricated houses
- block laying
- bricklaying
- building of room components (for example, kitchens, bathroom components, laundry components, cupboards and similar components)
- cabinet making (including joinery and off-site fabrication for installation at a building site)
- cable laying
- communications construction
- concreting (including formwork, pouring and finishing)
- construction and sealing roads
- construction management
- decorating
- demolition
- distribution line construction
- drainage work
- dredging
- earthworks
- electrical machinery, heavy, installation (on-site assembly)
- electrical work (including electrical inspection)
- electrical construction
- elevator and escalator installation and work
- engineering
- equipment rental with operator (if there is no operator, it is just rental of a good and not a building and construction activity)
- erection of frames
- erection of scaffolding
- excavation and grading
- fencing
- finishing
- flood control system construction
- flooring (for example, tiling, laying carpet, laying linoleum, timber flooring, floating floors, resilient flooring, slate tiles, and similar flooring)
- foundation work
- gas plumbing
- glass and glazing work
- hanging or installing doors
- installation of fittings
- installation of hard-wired alarm systems (security, fire, smoke and similar alarms)
- installation of hot water systems
- installation of pre-fabricated components (for example, kitchens, bathroom components, laundry components, cupboards and similar components)
- installation of pre-fabricated temperature controlled structures
- installation of septic tanks
- installation of solar devices (for example, hot water or electricity connections)
- installation of tanks
- installation of window frames
- installation of windows
- installation or work on devices for heating and cooling
- insulation work (walls, roofs, windows and similar structures)
- internet infrastructure construction
- irrigation system construction
- land clearing
- landscaping construction (including paving and design)
- levelling sites
- painting (internal and external surfaces, including roofs)
- pile driving
- pipeline construction
- plastering (or other wall and ceiling construction)
- plumbing work (including plumbing inspection)
- preparation of site
- project management
- rendering (or other internal or external surface finishes)
- retaining wall construction
- river work construction
- roofing and guttering
- sewage or stormwater drainage system construction
- stonework
- surveying
- swimming pool installation
- swimming pool construction (below ground concrete or fibreglass)
- tiling (walls and similar structures)
- timber work
- wallpapering
- waterproofing interior and exterior surfaces
Examples of buildings, structures, works, surfaces or sub-surfaces
Below is a list of what we consider to be buildings, structures, works, surfaces or sub-surfaces:
- aerodrome runways
- apartments
- breakwaters
- bridges
- canals
- commercial buildings
- communications, internet and electrical infrastructure
- dams
- duplex houses
- electricity power plants
- elevated highway
- flats
- footpath, kerb and guttering
- furnaces
- garages
- golf courses
- harbour works
- high-rise flats
- highways
- housing buildings (including pre-fabricated housing)
- industrial buildings
- jetties
- lakes
- mine sites
- office buildings
- oil refineries
- parking lots
- pipelines
- power plants
- railways
- roads
- semi-detached houses
- sewage storage and treatment plants
- sheds
- sports fields
- streets
- television or radio transmission towers
- tunnels
- water tanks
- waterworks.
