New Reporting System to Impact 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.
The new reporting regime, which is proposed to begin on July 1 if enacted, will require businesses in the building and construction industry to report annually to the Australian Taxation Office (ATO) 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.
C[pounds sterling]Because the provisions will apply to payments for supplies made on or after July 1, 2012, businesses within the industry will need to act promptly to ensure such systems are in place prior to the new financial year. …