Policy changes for Australian government contracts
Posted by Northadvisory on April 2, 2019
From 1 July 2019, government contracts worth over $4m (incl. GST) will require an ATO Statement of Tax Record (STR) to be attached to all tenders. The STR is required for all entities listed on the tender, and potentially some sub-contractors as well.
To be eligible for consideration in the tender process the contracting entity must have a satisfactory STR.
A satisfactory STR will be issued by the ATO from 1 July 2019 where you have:
- all your registrations up-to-date, including ABN, GST and tax file numbers
- lodged at least 90% of all income tax returns, fringe benefits tax returns and business activity statements on time within the previous four years, and
- no outstanding debts to the ATO, or an outstanding debt less than $10,000 to the ATO.
ATO debts which are greater than $10,000 are excluded where a payment arrangement is in place with the ATO.
If your Company does not have, or will not be eligible for, a satisfactory STR, you will need to make other arrangements in dealings with government contracts.
Martin van der Saag
T: 02 9984 7774