Businesses to report contractor payments to ATO

From 1 July last year, businesses in the building and construction industry have to report to the ATO the total amount they have paid contractors each year for building and construction services.

John Leonard, assistant commissioner, Australian Taxation Office, said these new reporting requirements have been introduced to create a level playing field for businesses and improve tax fairness within the industry.

“Contractors who fail to meet their tax obligations can gain an unfair competitive advantage,” Leonard said.

“We will use the information reported to detect contractors who have not lodged tax returns or failed to include all their income in tax returns lodged.

“We are asking contractors in this industry to make sure they include all their income in their tax return to avoid any penalties.”

More information can be found on the ATO website.