June 2012 Newsletter

In this edition:

Welcome

Are you 30 June ready?

2012 End of financial year strategies

Carbon tax: what footprint will it leave on you?

New reporting obligations for building contractors

Super contributions: what are the rules? (Part 3)

This change may require businesses to change the way contractor payments are recorded, so the information can be reported. If you are unsure how to implement this into your accounting software it is recommended you contact your payroll officer or accountant at Goodwin Chivas & Co. for advice.

Who needs to report?
Your business will need to report if all of the following apply:

• You are a business in the building and construction industry; and
• You make payments to contractors for building and construction services; and
• You have an Australian business number (ABN)

Payments by private home owners to contractors for domestic services are excluded.

Details you need to report
For each contractor the following information will need to be reported:

• Australian business number (ABN), if know
• Name
• Address
• Gross amount paid for the financial year
• Total GST included in the gross amount paid

Payments you need to report
The amount you will need to report will include the full value paid for the services provided by a contractor performing building and construction services which will include both labour and material costs.

You will not need to report the following:
Payments for materials only

• Any unpaid invoices at 30 June each year
• Payments where you are required to withhold Pay as you go (PAYG) as an ABN has not been provided by a contractor
• Payments made to contractors that do not supply a building and construction service, for example accounting or legal fees

How and when to report
The taxable payments annual report is due on the 21st of July each year

You will be able to lodge your reports online or by paper. As yet the online lodgment facility has not been setup by the ATO, it will be available closer to the initial lodgment date. Paper copies of the report can be ordered after the 1st of July 2012.

The first Taxable Payments Report for the 2012 financial year will be due the 21st of July 2013. As the reporting period for this report starts on the 1st of July 2012 it is important to have the appropriate systems in place to record payments made to contractors.

For more details on Taxable Payments Reporting see the ATO website or contact your accountant at Goodwin Chivas & Co.more information.