From 1 July 2012, there will be a crackdown on unreported payments in the building and construction industry. Any businesses involved in the industry, including sole traders, will need to lodge an annual report detailing amounts paid to contractors and sub-contractors, including each contractor’s ABN.
People working wholly or principally in the building and construction industry will need to report any payments that include a service component. If payments to a contractor are for services plus materials and fittings, then all the amounts paid to the contractor, including for materials and fittings, must be reported. If you think you might be affected, contact your Chartered Accountant.