Private ruling: Building and Construction Industry Payments
Published: June 2013
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Do you have to report the total payments you make to contractors supplying services to your landscaping business? | A1: No.


Relevant legislative provisions: Taxation Administration Act 1953 Section 405-5 | Taxation Administration Regulations 1976 Regulation 64

Reasons for decision: Summary: Are you a business that is primarily in the building and construction industry? Yes. You estimate that in the current financial year that 50% or more of your business income is derived from providing building and construction services in the form of building retaining walls and paving, as opposed to general landscaping gardening work. The general landscaping gardening work is not considered to be building and construction services. Is your business making payments to contractors for building and construction services? No. The contractors are providing general clean up or gardening services which are not considered to be building and construction services. You will not have an obligation to report the total payments you make to each of these contractors.

Relevant facts: You operate a landscaping business. You do landscaping but also do paving and retaining walls under one metre as per your builder's licence. | It is estimated that 50% or more of your business income is from supplying landscaping building and construction services such as paving and building retaining walls. | You hire garden subcontractors from time to time to do garden clean-ups. They clean up around the sites where you are working. They are not involved in any building work, only garden and clean up type work.