ATO payment change adds mounting pressure on home builders
The Housing Industry Association wants the ATO and Federal Government to reverse a decision to stop accepting credit card payments from 30 November. HIA says the change adds financial pressure on home builders.
Why is the ATO stopping credit card payments and how will it affect my building business?
Builders and other contractors who use credit cards to manage cash flow on tax bills may lose that option. This could tighten working capital for small building businesses.
Key takeaways
- The ATO plans to stop accepting credit card payments from 30 November.
- The Housing Industry Association wants the decision reversed.
- HIA says the change adds mounting pressure on home builders.
- Builders who use credit cards for tax payments may need other cash flow options.
Related
ATO ramp up of small business debt collection
Master Builders Australia has published a news item saying the ATO is stepping up its debt collection against small businesses. The text provided gives no further detail on the measures, timing or amounts.
Why it matters: Builders and other trade businesses with outstanding tax debts may face firmer ATO collection action, which could strain cash flow. Details are not in the source text, so check the ATO or Master Builders directly.
Construction needs an effective enforcer not a paperwork obsession
The Housing Industry Association (HIA) warns that proposed national construction standards and new procurement rules miss the mark. It says the measures land hardest on home builders and argues for an effective enforcer rather than more paperwork.
Why it matters: Home builders and small residential contractors could face extra compliance paperwork and procurement requirements, adding admin time and cost to jobs without necessarily lifting building quality.
Potential Commonwealth Standards for the Construction Industry
The Housing Industry Association (HIA) says it backs a lawful, safe, productive and sustainable construction industry and has long called for structural reform. It says the consultation on potential Commonwealth standards proposes several measures it is concerned about.
Why it matters: Commonwealth standards could add new compliance requirements for builders and subcontractors across residential construction. The article gives no detail yet, so the practical impact on trades is unclear.