ATO Reporting for Builders
Running a tradie business means reporting parts of your business to the tax authorities.
For instance, if you’re a builder then you need to report total payments made to every contractor involved in all of your building and construction services for the year.
We break down the details of taxable payments reporting in the building and construction industry.
Do I need to report?
You are required to report if the following applies to you:
- be a business that works in the building and construction industry
- pay contractors for building and construction services
- have an Australian business number (ABN).
What do I need to report?
Likewise, according to the ATO, you are required to report the following information regarding each contractor:
- their Australian business number (ABN), if known
- their name
- their address
- the gross amount you paid them for the financial year (this is the total amount paid including GST)
- the total GST included in the gross amount you paid.
Information on the following can be found on the invoices made with the contractors.
What doesn’t require reporting?
However, there are also instances that you do not need to report the payments.
ATO declares the following:
- payments for materials only
- any invoices that you have received but have not paid as at 30 June each year
- payments which must be reported in a Pay as you go (PAYG) withholding payment summary annual report, such as payments to employees
- payments for private and domestic projects – for example, payments you make for building or renovating your own home.
What is the ATO reporting deadline?
You need to complete the Taxable Payments Annual Report every 28th of August.
For more information, you can check the ATO page on Taxable payments reporting – building and construction industry.