Rules regarding Commonwealth government contracts

If a client is applying for a tender valued over $4 million (including GST) that is subject to the Commonwealth Procurement Rules, they must obtain a Statement of Tax Record (STR) showing satisfactory engagement from us.

The ATO said some businesses are losing out on Commonwealth government contracts because they don’t provide correct documents such as the STR.

For clients tendering for Commonwealth government contracts, the ATO said it’s worth taking a few minutes to understand the STR requirements so they are not excluded from the tender process by ensuring they provide the correct documents.

To ensure a client is successful in receiving a satisfactory STR: tax agents should apply for an STR early to allow time for processing before tender closing dates or previous contract expiry dates.

They should also ensure that their registration, lodgement, and payment obligations are up to date and be aware that more than one STR may need to be provided depending on the nature of the business. For example, some business structures, like partnerships and trusts, require more than one STR.

If the STR has an unsatisfactory outcome, corrective action can be taken to bring a client’s tax obligations up to date. They may then reapply for an STR the day after the corrective action is recorded on ATO systems.

For more information, go to Statement of Tax Record.