Taxation Administration Amendment Regulations 2012 (No.   )1
Select Legislative Instrument 2012 No.   
I, QUENTIN BRYCE, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Taxation Administration Act 1953.
Dated	2012

Governor-General
By Her Excellency’s Command
[EXPOSURE DRAFT — NOT FOR SIGNATURE]
Assistant Treasurer

1	Name of Regulations
		These Regulations are the Taxation Administration Amendment Regulations 2012 (No.   ).
2	Commencement
		These Regulations commence on 1 July 2012.
3	Amendment of Taxation Administration Regulations 1976
		Schedule 1 amends the Taxation Administration Regulations 1976.

Schedule 1	Amendment
(regulation 3)
[1]	After Part 7
insert
Part 8	Payment, ABN and identification verification system
64	Reporting requirements — building and construction industry
	(1)	For section 405‑5 of the Act, a supply by a supplier to a purchaser is specified if all of the following circumstances apply:
	(a)	the purchaser is a business that is primarily in the building and construction industry;
	(b)	both the supplier and the purchaser have an ABN;
	(c)	the supplier supplies to the purchaser:
	(i)	building and construction services; or
	(ii)	a combination of goods and building and construction services, if the supply of the services is not incidental to the supply of the goods.
	(2)	Subregulation (1) does not apply if both the supplier and the purchaser are members of:
	(a)	the same consolidated group; or
	(b)	the same MEC group.
	(3)	Subregulation (1) does not apply if the payment made for the supply is a payment of the kind mentioned in paragraph (a) of the definition of withholding payment in section 995-1 of the Income Tax Assessment Act 1997.
	(4)	An expression used in this regulation and in the Income Tax Assessment Act 1997 has the same meaning in this regulation as in that Act.
Note   For the definitions of the following expressions, see section 995-1 of the Income Tax Assessment Act 1997:
	ABN
	consolidated group
	MEC group
	member, in relation to a consolidated group
	member, in relation to a MEC group
	supply.
	(5)	A purchaser is taken to be a business that is primarily in the building and construction industry only if:
	(a)	in the current financial year, more than 50% of the purchaser’s business income is derived from providing building and construction services; or 
	(b)	in at least one of the 2 financial years immediately preceding the current financial year, more than 50% of the purchaser’s business income was derived from providing building and construction services.
	(6)	In this regulation:
building and construction services include any of the following activities, if the activities are performed on, or in relation to, any part of a building, structure, works, surface or sub‑surface:
	(a)	alteration;
	(b)	assembly;
	(c)	construction;
	(d)	demolition;
	(e)	design;
	(f)	destruction;
	(g)	dismantling;
	(h)	erection;
	(i)	excavation;
	(j)	finishing;
	(k)	improvement;
	(l)	installation;
	(m)	maintenance;
	(n)	management of building and construction services;
	(o)	modification;
	(p)	organisation of building and construction services;
	(q)	removal;
	(r)	repair;
	(s)	site preparation.

Note
1.	All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See http://www.frli.gov.au.