of the Government's crackdown on cleaning and courier companies was revealed
From 1 July
2018, the taxable payments reporting system will extend beyond the building
industry to cleaning and courier businesses. This means that these businesses
will need to report payments they make to contractors (individual and total for
the year) to the ATO. By 'payment' the ATO means any form of consideration
including non-cash benefits and constructive payments.
building industry has had this form of "enhanced reporting" since 2012-13. The
result was an additional $2.3 billion in income tax and GST liabilities
collected through voluntary reporting in the first year alone.
What is a cleaning and courier service?
The terms 'cleaning
service' and 'courier service' take their ordinary meaning.
services include activities where items or goods are collected from, and/or
delivered to, any place in Australia using a variety of methods including by
truck, car, station wagon, van, ute, motorcycle, motorised scooter, bicycle or
other non-powered means of transport, or on foot. Freight services, blood and blood product
couriers, and passenger transport are not affected.
service is 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. This includes office cleaning, road sweeping or street
cleaning, swimming pool cleaning, park and facilities cleaning, or cleaning for
certain types of cultural or sporting events.
that supply services including courier or cleaning services will also be
What you need to do
annual report for affected cleaning and courier companies is due by 29 August
2019 for the 2018-19 year. The types of information reported to the ATO about
ABN (where known)
- Total paid to the contractor
(including GST) for the financial year, and
- Total GST included in the gross
amount that was paid.
invoice you receive from a contractor includes both labour and materials,
whether itemised or combined, you will need to report the total amount of the
If your business is likely to be affected by
the new requirements and you currently do not have systems in place that allow
you to readily access the information required by the ATO, it's important to
start your planning now.