Getting it right – a focus on property and construction

ATo is highlighting reporting issues in the property and construction industry.

As part of their ‘Getting it right’ campaign, ATO has released the latest focus area for small business. Each quarter, ATO highlights areas where small businesses often make mistakes, due to misunderstanding, oversight, or even opportunistic or deliberate behaviour. ATO offer ongoing guidance to help you stay informed and on track.

This quarter, ATO focus is on the property and construction industry. This is one of the largest sectors in the small business market and a frequent source of tip-offs.

ATO knows most small businesses want to do the right thing. However, in this industry ATO continue to see recurring issues, including:

• omitting income, such as:
  • not reporting all income, whether received in cash or money deposited into bank accounts
  • incorrectly classifying income from property development
  • contractors omitting income reported to us through the taxable payments reporting system

• overclaiming expenses and GST credits
• incorrectly reporting expenses that are private in nature as business expenses, or not apportioning an expense correctly for business and personal use
• not registering for GST when required
• using business funds and assets to support their personal lifestyle, tax-free.

If you run a business in property or construction, or otherwise operate as a builder, contractor or tradie, it is important to make sure you are reporting correctly and meeting your obligations.

By sharing this focus early, ATO wants to help you avoid common mistakes and build strong habits to get it right from the start.

For more details, see Property and construction industry – key tax and super risks.

Keep up to date

ATO has tailored communication channels just for small businesses – so you’ll always be up to date with the latest information and changes relevant to you.

• Explore more articles in our Small business newsroom.
• Subscribe to our free monthly Small business email newsletter.
• Get email notifications about new and updated information on ATO’s website – just select the Business and organisations category to get updates relevant to you – including more newsroom articles like this one.

Source: ATO