Building & construction companies to report payments to contractors

Immediately prior to Christmas 2011, Treasury issued draft Regulations that are proposed to apply from 1 July 2012 to businesses in the building and construction industry. The draft Regulations are applicable for the purposes of Division 405 of the Taxation Administration Act 1953 (Cth) and will require those businesses to report to the Australian Taxation Office payments made to contractors that provide building and construction services.

The draft Regulations follow a Consultation Paper issued in May 2011 to the industry and the Australian Taxation Office's Compliance Program 2011-12, which identified industry-wide non-compliance with taxation obligations by contractors in the building and construction industry. The Australian Taxation Office's Compliance Program also identified a more generalised concern about whether workers called "contractors" are actually contractors at law.

Join NECA to access this information, or log-in if you are already a member.