Data reported will assist the Tax Office to detect contractors who have not lodged their tax return or those who have not included all their assessable income in their tax return.
For the 2014/15 financial year, the Taxable payments annual report is due for lodgment by August 28, 2015, with penalties applicable for late lodgment.
Payments made to contractors will need to be reported on a cash basis if it relates to activities such as construction, demolition, design, destruction, dismantling and removal.
Generally, this includes both labour and materials, whether itemised or combined unless the labour component is only incidental.
The Taxable payments annual report can be lodged by one of the following methods:
- Online using the Business, Tax Agent or BAS Agent Portals or Standard Business Reporting; or
- Completing a paper form.