Geoffrey Yiu & Daniel Kostoski discuss a new measure aimed at increasing the integrity of government procurement.
All Australian and foreign entities seeking Commonwealth Government contracts worth over $4 million including GST should be aware of the new procurement process, effective 1 July 2019. Policy requirements state that a satisfactory Statement of Tax Record (‘STR’) must be obtained from the ATO by the tenderer and any first tier subcontractors before the awarding of the contract.
The Australian Taxation Office (ATO) expects to be in a position to allow online STR applications from June 2019.
As the STR will only be valid for 12 months, a business will need to put in place a process to ensure that it requests a fresh STR on a timely basis for each of its relevant entities. It will also need to monitor developments in what criteria it will need to meet to be able to obtain a future STR. It is expected that after the first year, the criteria may become more stringent.
To read more on when a satisfactory STR will be issued, please log on to KPMG Tax Now.
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