The Australian Government has foreshadowed a new regime for the building and contstruction industry to make sure independent contractors report income correctly. The proposed regime would require certain entities to report annually any amounts paid to contractors and sub-contractors in the building and construction industry along with each contractor’s ABN. The proposed regime was first announced in the 2011-2012 Federal Budget and again in a consultation paper by the treasurer. The proposed commencement date of the reporting requirement is 1 July 2012, reports are therefore due when the 2013 yearly tax returns are lodged. The aim is to improve tax compliance by providing the ATO with sufficient information to allow for data matching and targeted audits. It is expected that this regime will be rolled out to other industries in the near future.
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