Contractors to require Statement of Tax Record (STR) for Federal Government contract tenders
From 1 July 2019, any business tendering for a Government contract worth more than $4 Million must provide a Statement of Tax Record (STR) as part of the tender process.
This measure is part of a raft of measures aimed at tackling the ‘black economy’ and supports businesses that have a good tax compliance record.
These rules will apply to the main contractor tendering for Government contracts and a first tier contractor undertaking work valued at more than $4 Million for the prime contractor.
The Australian Taxation Office will provide a STR where the business:
- Is correctly registered for an Australian Business number (ABN), Tax File number (TFN) and Goods and Services Tax (GST);
- Have lodged at least 90% of all tax returns, business activity statements, Fringe Benefits Tax returns due within 4 years of the date of request for a STR.
- There is no greater than $10,000 of tax due without a payment plan in place
The above encourages a good compliance history. Continued late lodgements or payments may affect the ability to have a STR granted.
The STR will generally be valid for 12 months from date of issue.
The ATO will allow requests for an STR online from 1 June 2019 and more information should become available then.
For more information about these measures please contact your usual Mazars advisor or alternatively one our specialists on:
Brisbane - 07 3218 3900
Sydney – 02 9922 1166
Melbourne – 03 8458 0000
Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.