What is a Statement of Tax Record and why do I need one?
If you want to tender for Federal Government work, you may need a satisfactory Statement of Tax Record from the Australian Tax Office as part of the tender writing process.
This is now part of the Australian Government procurement process.
To win tenders and proposals for Commonwealth Government contracts valued at more than $4 million, you will need a Statement of Tax Record. You will need to provide this in your tender response.
The Australian Tax Office issues Statement of Tax Records as part of the Black Economy Procurement Connected Policy. To obtain a satisfactory Statement of Tax Record:
- Your registration details, such as ABN and GST must be up to date
- You have lodged at least 90% of relevant returns (Income Tax, BAS, FBT)
- You have paid undisputed debts
There are additional requirements if your Australian tax record is shorter than four years. You may need to make statements about your previous tax arrangements.
If your Statement of Tax Record is unsatisfactory, you will not be able win the contract.
I’m a subcontractor. Do I need a Statement of Tax Record?
You might. The tender process should explain if it applies to you.
If you are a first-tier subcontract and you are tendering for a package worth more than $4 million you need a satisfactory Statement of Tax Record.
Most likely you will need to provide this in your submission to the prime contractor or prime tenderer in your tender or proposal.
This requirement is likely to impact businesses participating in major construction tenders, manufacturing tenders and many Defence tenders.
If you fall into this category, getting your Statement of Tax Record ahead of time, may just be your edge to winning tenders over less-prepared competitors.
How do I get a Statement of Tax Record?
You or your tax agent can request your Statement of Tax Record. The Australian Tax Office provides several ways to request your record including the Business Portal and agent portal.
More details are on the Australian Tax office website, here:
Using Your Statement of Tax record in your Tender Submission
If you have been asked to provide your Statement of Tax Record in your submission, we can help you work out where and how to include it. It is important that you show it clearly in your tender submission.
I have requested my Statement of Tax Record, but I don’t have it yet.
While the Australian Tax Office endeavours to issue Statement of Tax Records promptly, sometimes your record may not be ready when your tender is due.
Purchasers often have provisions for you to prove you have requested a Statement of Tax Record, with a method to provide it later.
Again, talk to us if you have any questions about this, as failing to do this correctly may destroy your chance of winning.
How Bidsmith Can Help
Because we work on so many Federal Government tenders, we have lots of experience with matters like this.
Our tender writing services cover all aspects of public and private tenders.
If you have a question, there is a high chance our tender writers have seen a similar situation and can help you resolve your problem. Contact us today to get timely, professional advice.