Master Builders Australia has made a submission to Government calling for more detailed consultation with the building and construction industry before settling on a new tax reporting regime for building contractors.
Wilhelm Harnisch, CEO of Master Builders Australia said: "Master Builders is concerned over a proposal that imposes another cost burden on all contractors operating in the industry to catch one third of one per cent who are allegedly doing the wrong thing; what we need to avoid is the taking of a sledgehammer to crack a walnut.
In the 2011-2012 Budget, the Commonwealth Government announced that it would introduce a reporting regime for contractors in the building and construction industry starting on 1 July 2012.
Treasury recently issued a Consultation Paper and Master Builders has responded to the proposals to frame the regulations that would set up the comprehensive scheme.
Harnisch said, "The building industry fears that the reporting proposal will result in a colossal and costly administrative burden on the industry.
"Master Builders has asked before a scheme that will affect every business in the building and construction industry is put in place, more detailed data both quantitatively and qualitatively be made available to the industry so that it can assist Government to ensure any reporting scheme is firstly justified, secondly not administratively burdensome and thirdly focuses on those who are non tax compliant rather than imposing a reporting burden on those who are tax compliant.
"Master Builders does not condone those who engage in tax evasion and tax avoidance and supports appropriate tax compliance measures to catch those who do.
"Introducing a scheme that will require each and every contractor in the industry to make a comprehensive report annually to the ATO with the additional administrative burden and the costs that this will incur is not necessarily the answer to catching a small number of tax cheats."
Harnisch said, "We believe that the proposed scheme should be put on hold until the Government undertakes more research based on comments received on the Consultation Paper.
“It should then conduct another round of targeted consultation with the industry before finalising details for any new reporting system that may be put in place."
