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Guidance for courier and cleaning industries reporting system

Posted by Northadvisory on August 6, 2018

As of 1 July 2018, under this reporting system, businesses in the courier industry and the cleaning industry are required to report payments they make to contractors (individual and total for the year) to the ATO. The reporting system previously was only operational for the building and construction industry.

 
The draft ruling LCR 2018/D6 outlines how to work out if an entity comes within the reporting requirements and whether the exemption is available (where total amount of payments an entity receives for courier or cleaning services is less than 10% of the entity’s GST turnover). The ATO also states its views on what is or is not regarded as a courier service or cleaning service, and illustrates its views in many examples.

 
Specific payments that do not need to be reported are payments for materials, unpaid invoices as at 30 June each year, PAYG withholding payments, payments within a consolidated group and payments made by individuals for private or domestic reasons.

 

If you have questions on any of the above issues raised, please do not hesitate to contact us.

Kim Edwards
Chartered Tax Adviser
Chartered Accountant
T: 02 9984 7774
E: kime@northadvisory.com.au