New System to Affect Construction Industry
NEW reporting systems drafted by the Federal Government last month could significantly impact the building and construction industry in 2012, according to BDO Tax partner Don Collins.
If enacted, the new reporting regime, which is proposed to begin on July 1, will require businesses in the building and construction industry to report annually to the Australian Taxation Office on all payments made to contractors providing building and construction services.
Mr Collins said these new regulations could impose a significant information-gathering and reporting burden on the building and construction industry.
C[pounds sterling]Basically, what this means to industry and business owners is potentially another layer of reporting and compliance with the ATO,C[yen] Mr Collins said.
As the regulations are for business-to-business transactions (payments by private consumers are not included), Mr Collins said all companies within this sector would need to ensure their current accounting systems could adequately capture the necessary information.
C[pounds sterling]While certain details are yet to be finalised, we are advising all companies within this sector to ensure their current accounting systems and processes are up-to-date, and are able to provide the necessary data required,C[yen] Mr Collins said.
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Publication information: Article title: New System to Affect Construction Industry. Contributors: Not available. Newspaper title: Sunshine Coast Daily (Maroochydore, Australia). Publication date: January 24, 2012. Page number: Not available. © 2009 APN Newspapers Pty Ltd. COPYRIGHT 2012 Gale Group.
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