Using contractors in your business?
Find out if you need to lodge a Taxable Payments Annual Report
All businesses operating in the following industries, which hire contractors to perform work directly connected with their operations, are required to lodge a Taxable Payments Annual Report (annual report) for the year ended 30 June 2020:
- Building and construction services
- Cleaning services
- Courier services
- Road freight services
- Information Technology services
- Security, investigation and surveillance services.
You can lodge your annual report using any of the following methods:
- Have AFS lodge it on your behalf.
- Through the Australian Taxation Office’s (ATO) online business portal.
- Complete a paper form and mail it to the ATO.
If you wish to lodge your report via paper form, you can order a form from the ATO by:
- visiting https://business.iorder.com.au/BrowsePublications.aspx and entering the publication as: Taxable payments annual report, or
- phoning the ATO’s publications ordering service on 1300 720 092.
In order to complete the report, you must provide the following details for each contractor you have paid:
- Business name as shown on invoice issued to you or their full name if an individual
- Address
- Australian Business number (ABN)
- Telephone number
- Total gross payment amount for the year
- Total GST payment for the year
- Amount of tax withheld if ABN not quoted.
All annual reports are required to be lodged to the Australian Taxation Office (ATO) by Friday 28 August 2020. If you are unable to lodge by this date, we urge you to contact AFS, your accountant or the ATO directly to seek an extension of time for lodgement.
If you have any questions in regards to the lodgement of your businesses annual report, please contact Brendan McKenzie, Senior Manager AFS & Associates via phone on 03 5443 0344.
