Central Coast Accountants

Building & Construction Accountants

Taxable Payments Annual Report

The ATO annual report for businesses in the building and construction industry is due at the end of July each year. This report is the most compelling reason to hire a construction accountant with specialist skills in the vertical, because the liability for getting things wrong is significant.

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. Another option, and one that is a really good idea for any business in the space, is to hire a construction accountant – a specialist in this field – who will be able to advise you of your obligations and help with the preparation of the forms.

ATO Link

Long Service Corporation for the Building and Construction Industry

Another good reason to invest in construction accounting: 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, and this is something that you don’t want to miss out on. 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 five years unless special circumstances apply.

Your specialist construction accountant will be able to help you with this registration if you ask them. 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, talk to your construction accountant, or 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. Proper construction accounting is important here, too, because if you get it wrong, the ATO can impose substantial penalties.

Below are some of the characteristics of Employees and Contractors


  • Have their work directed and controlled by their employer
  • Have standard hours of work – except for casual employees
  • Have an ongoing expectation of work
  • Bear no risk for the work performed, risk is covered by the employer’s insurance
  • Are entitled to superannuation paid by their employer
  • Tools are provided by their employer
  • Have income tax deducted from their wage by the employer
  • Are paid their wage regularly
  • Are entitled to paid leave


  • Have a high level of control over the work performed
  • Are usually engaged for a specific task or time
  • Bear the risk and liability for poor work or injury and usually have their own insurance
  • Pay for their own superannuation
  • Use their own tools and equipment
  • Pay their own tax liabilities including GST
  • Have an ABN and submit invoices
  • Do not receive any paid leave

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