Businesses could face penalties
If you're running a business primarily in the building and construction industry, the ATO has just advised that from February it will be contacting businesses in this industry about any overdue Taxable Payments Annual Reports (TPARs).
The ATO advises that if businesses have not lodged their 2017/2018 or any prior year TPARs, 'now is the time to get them back on track to avoid penalties'.
You will need to lodge a Taxable payments annual report (TPAR) if you:
- make payments to contractors for building and construction services, and
- have an Australian business number (ABN).
You need to report these payments to the ATO on the TPAR by 28 August each year.
Activities and services considered to be building and construction are broad.
Some examples include architectural work (including drafting and design), certification, decorating (including painting), engineering, landscaping and construction, project management and surveying. The ATO have a list of examples of building and construction services to see whether your business activities and the services you pay for are included.