The new reporting requirement about payments to suppliers in the construction industry does not need to be Hard!
While the legislation creates interesting analysis of what is going on, we believe that it can be kept simple.
HOWEVER Government MUST help - otherwise the unnecessary red tape burden will ahve increased: Where is the electronic gateway (through SBR enabled software)? Where is the realisation that all reports will not be provided by 21 July 2013 (at least not if they want reports that are correct)? Where is the change to law to allow Bookkeepers/BAS Agents to be allowed to apply this law to their clients?
Businesses can keep the reporting simple: Identify which suppliers this law appleis to and just report every payment to them. Ultimately if government arent able to provide simple methods of reporting, which means getting all the popular software companies onside quickly, then a lot of paper is going to be sent ot the ATO for their rekeying.
It appears this measure is supposed to provide data so that the ATO can prefill more income in the contrators income tax returns. We question whether this is going to help. Once again compliant businesses will do what is necessary and those that don't want to, wont.
The ICB guidance notes: click here