Businesses providing courier or cleaning services that have an ABN are now required to report information to the ATO about certain sub-contracting arrangements. The Bill to implement recommendations made in the interim report of the Black Economy Taskforce has just completed its passage through parliament.
The measures, which extend the operation of the taxable payments reporting system (TPRS) that currently apply to the building and construction industry, will apply from 1 July 2018.
So those businesses affected will need to report payments they have made to contractors from 3 months ago (1/7/18) onwards. If you do not already have your software set up to capture this information (or recording it manually if you don’t use software), then you urgently need to start doing so.
Broadly, the requirement to report applies where the total amount you receive for courier or cleaning services is 10 per cent or more of your total gross sales.
A courier service is intended to include any service where an entity collects goods from and delivers them to another place. These goods may include parcels, packages, letters, food, flowers or any other goods. The goods may also be transported by a number of different means, including by car, truck, van, motorcycle, motorised scooter, bicycle, on foot, or other means of transportation.
A cleaning service is intended to refer to any service where a structure, vehicle, place, surface, machinery or equipment has been subject to a process in which dirt or similar material has been removed from it. Some examples of this include office cleaning, road sweeping or street cleaning, swimming pool cleaning, park and facilities cleaning, or event cleaning.