1 July 2012 shall re-introduce a system for reporting of payments to each contractor for building and construction services.
For those in business pre GST, this appears to be similar to the PPS (prescribed payments system) which was abolished pre GST introduction 1.07.2000.
The first annual report is due 21 July 2013 for payments made in the 2012-13 financial year. In this first year businesses that lodge their business activity statements quarterly, may lodge by 28 July 2013.
For more information, refer to Taxable payments reporting – building and construction industry.
The ATO appears to improving systems to monitor and effectively rub out subcontractors not reporting their income.
It would also expose those potentially liable for superannuation guarantee, together with data matching for workers compensation insurance etc.
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