For some time now, the construction industry has been required to report payments to contractors directly to the ATO. This is to enable the ATO to match these payments to the contractors when they submit their annual tax return.
Progressively, the ATO have been adding additional industries, such as cleaning and courier services (from 1 July 2018)
Next year (from 1 July 2019), the ATO will be adding the following industries:
- Information technology (IT) services
- Road freight services
- Security, investigation or surveillance services
Compliance is relatively straight forward, but you will need to identify the suppliers in your accounting software in order to produce the report required for the return.
If you are in one of these industries and unsure of the impact of this on your business, or need help with compliance, please contact our office immediately for assistance.