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Tax Updates

Contractor Payments

Contractor payments 2016-19

The ATO will acquire data from businesses that it visits as part of its employer obligations compliance program during the 2016-17, 2017-18 and 2018-19 financial years.

Data to be collected include: ABN of the payer business; ABN of the payee business (contractor); name, address and contact details of the contractor; dates of payment to the contractor; and amounts paid to the contractors (including details of whether the payment included GST). It is estimated that records for 25,000 of entities will be obtained, including the records of 12,500 individuals.

The program aims to:

  • assess the integrity of the information held on the Australian Business Register to assist the Registrar develop educational and compliance strategies;
  • obtain intelligence to identify risks and trends about contractors that may not be complying with their taxation obligations;
  • ensure compliance with registration, lodgment, correct reporting and payment of taxation and superannuation obligations;
  • promote voluntary compliance and better tailor educational products and services.

The ATO noted that the program has been ongoing since the 2008-09 financial year and has resulted in improved compliance with obligations and additional income tax, GST and PAYGW liabilities being raised.