In October 2017, information was released by the ATO about their intent to target cleaners and couriers in the coming month and year ahead.

According to an article released by GTH Group, from 1st July 2018, the taxable payments reporting systems will move from beyond the building sector, to include cleaning and courier companies.

What does this mean?

This latest news means that any cleaning and courier companies will now need to report fully about any payments they are making to contractors, both individually along with total amounts for the year to the Australian Tax Office. This includes non-tax benefits and constructive payments.

Those in the building sector have already become accustomed to the system since its introduction in 2012. The result of this during the first year of voluntary reporting was an additional $2.3 billion in GST liabilities and income tax collected.

What do you need to do if you work as a courier or a cleaner?

The initial yearly report for any couriers or cleaning companies is not due out until August 2019, following the 18/19 tax year. The specifics type of data that is being reported to the ATO about any contractors will include the items listed below.

  • Name
  • Address
  • ABN
  • The total value of payments made to the contractor over the year
  • Total GST that is included within any amounts that were paid

If you receive an invoice from a contractor that includes both materials and labour; regardless of whether these items are combined or itemised, then you will have to report the total value of the payment.  If you are going to be impacted by this change, and you do not already have a system in place that gives you the ability to readily access the data needed by the ATO, it’s important to start your planning before the new tax year arrives.