Building & Construction Accountants

Taxable Payments Annual Report

The ATO annual report for businesses in the building and construction industry is due on 21 July 2014.

If you are in the building and construction industry and make payments to contractors, you should check if you need to lodge this report, because if you are late penalties of up to $850 for small businesses apply.

For each contractor you will need to provide their ABN, name, address, amount paid to them during the year and the amount of GST included in that payment. The information on these reports is then used by the ATO to ensure that contractors are meeting their tax obligations.

You should check your accounting software to see if it will enable you to lodge your report online, if not you will need to lodge using the ATO paper form.

For further information, the link to the ATO below might help.

ATO Link

Long Service Corporation for the Building and Construction Industry

If you are a self employed worker in the building and construction industry you could be eligible for a long service payment if you are registered with the Long Service Corporation. The corporation collects a levy on building and construction work in NSW and invests these amounts until required to make payments to its members.

In order to be eligible you need to register as soon as possible as there will be no credit for work performed prior to registration, which can only be back dated a maximum of 5 years unless special circumstances apply.

Once registered you will lodge a report of your eligible income and expenses with the Long Service Corporation which they use to calculate the credits owing to you.

If you work for wages in the building and construction industry, your employer is required to register with the Corporation and report their employees details to the Corporation on your behalf.

For any further information on this scheme or to register, see the link below -

Scheme or Register

Subcontractor Vs Employee

Are your workers employees or contractors? Depending on which they are different rules apply for superannuation, workers compensation and PAYG Withheld. If you get it wrong, the ATO can impose penalties.

Below are some of the characteristics of Employees and Contractors

Employees:-

Contractors:-

For a more detailed list and to help you work out if your workers are employees or contractors the ATO provide the following tool to help you with your particular circumstances-

ATO Tool