Australia only

If you work in the building and construction industry, you are required to report to the ATO the amount of all payments you make to contractors for services (such as labour).

This does not apply to businesses in other industries who make purchases from building and construction-related businesses.

What transactions do you need to report?

You need to report the total payments you make to each contractor or supplier for building and construction services each year. This doesn’t include payments for materials, but you should report any transactions that include a service component. For example, you would be required to report a transaction involving the purchase of paint alongside painting services. For more information, see the ATO website.

What do I need to do?

At the end of the financial year, you need to produce the Taxable payments annual report to declare all of your taxable payments to the ATO. For more information, see Producing the Taxable payments annual report.

Setting up MYOB Essentials to record reportable contractor payments.

If you need to report your taxable payments, choose My business details from the Settings menu, then select the Taxable payments reporting option.

MYOB Essentials will now allow you to mark transactions and contacts as reportable, and to set up rules to automatically include transactions on your Taxable payments annual report.

Mark reportable contacts

If most of your transactions with a particular contact are reportable, you can save time by marking them as reportable. When you do this, all transactions involving this contact will be automatically marked as reportable.

If you need to, you’ll be able to change whether an individual transaction is reportable. See Marking transactions as reportable or not reportable.

1. Go to the Contacts page and select the contacts you want to make reportable by clicking in the checkbox next to their name.
2. Click Reportable. The contacts are marked as reportable, and the letter R appears in the Type column.

Marking transactions as reportable or not reportable

Bill transactions

You can choose whether a bill transaction is reportable or non-reportable by selecting Reportable on the Bill screen when you enter or edit the bill.

Payments that have been matched to reportable transactions will display the letter R on the Bank transactions page.

Bank transactions

You can also mark bank transactions as reportable after you’ve allocated them to an account by selecting the checkbox in the R column on the Bank transactions page and then choosing which supplier to assign the payment to.