Wednesday, August 24 2011
Tradies concerned over burden of ATO new reports
Australia's self-employed tradespeople may have to prepare for added expenses if a new taxation reporting system is approved.
Assistant treasurer Bill Shorten is behind the push to make building and construction businesses disclose all payments to contractors as part of their annual tax report.
Increased paperwork and costs are expected for the industry's 150,000 businesses, with a start date set for July 2012.
Master Builders Australia (MBA) chief executive Wilhelm Harnisch has told The Australian that his organisation estimates cost for builders to set up the system will be at least $1500.
Harnisch says: "This is a cost burden that is being shifted from the ATO to business. Each business is being required to become a mini tax office."
Running the system is expected to cost $380 for businesses every year according to the MBA.
The figures conflict with the government's estimates of $300 for setup, with an additional $90 per year for ongoing continuation of the system.
Both sides have questioned the accuracy of their figures, with the government also releasing a discussion paper calling for submissions from industry stakeholders.
The reports will be required for all working involving payments to contractors including landscaping, painting and bathroom renovations.