The ATO’s Black Economy Taskforce has several new industries in its sights announcing that from 1 July 2018 businesses supplying courier or cleaning services will need to report payments made to contractors. Payments must be reported to the ATO annually on their taxable payments annual report.
If you are a business and you supply a courier or cleaning service you will need to report any payments you make to contractors if:
· the payment is wholly or partly for providing this service on your behalf
· payments you receive for courier or cleaning services make up at least 10% of your current or projected goods and services tax (GST) turnover (whichever is applicable to your business), and
· you have an Australian business number (ABN).
Note courier services do not include passenger transport services (Eg Buses or Taxis) or freight transport. However the Government has announced that businesses in the road freight transport industry will be required to report from 1 July 2019.
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