Statement of tax record

We will be undertaking system maintenance from 24 December 2024 to 7:00 am AEDT Thursday 2 January 2025.

Statement of tax record (STR) requests lodged between:

• 18 December 2024 to 23 December 2024 may not be processed before the systems shutdown; and
• 24 December 2024 to 7:00 am AEDT Thursday 2 January 2025 will be processed from 7:00 am AEDT Thursday 2 January 2025.

For more information about ATO system availability, visit our System maintenance

Commonwealth Government procurement

Businesses tendering for Commonwealth Government procurementsExternal Link that are undertaken through open tenders, are subject to the Commonwealth Procurement Rules and have an estimated total value of over $4 million (including GST) must obtain a statement of tax record (STR) showing satisfactory engagement with the tax system.

The satisfactory STR needs to be valid at the time of tender closing.

We recommend that entities requiring an STR:

• refer to the tender request documentation to clarify the requirements
• refer to the Black Economy Procurement Connected Policy (PCP)External Link to understand how the rules affect them – the Black Economy PCP commenced on 1 July 2019 and applies to new approaches to market on or after 1 July 2019
• apply for an STR early to allow time for processing before the tender closing date
• keep their tax obligations (registration, lodgment, payment) up to date, to ensure they receive a satisfactory STR.

Note: The term ‘black economy’ has now changed to shadow economy. This change reflects the Organisation for Economic Co-operation and Development’s (OECD) definition of unreported or dishonest economic activity.

Who needs an STR

You must obtain a satisfactory STR if either:

• you are a business (prime contractor) tendering for Commonwealth Government procurements with an estimated total value over $4 million (including GST)
• you are a supplier involved in a panel arrangement when the total value of orders under the arrangement is collectively estimated to be over $4 million (including GST)
• you are required as outlined in the tender request documentation.

A prime contractor is a business tendering for or under contract with a Commonwealth Government agency.

A first-tier subcontractor works directly for a prime contractor. First tier subcontractors undertaking work individually valued at over $4 million (including GST) for the prime contractor are also required to have a satisfactory tax record.

Partnerships, trusts, joint ventures and consolidated groups

A business that is tendering for a contract must request an STR. Different rules apply depending on the entity structure of the tenderer or subcontractor:

Partnerships

A partnership and each partner directly involved in delivering a contract must request an STR. New partners who become directly involved in the delivery of the contract must request an STR within a reasonable time after they become involved. These STR requirements apply if those involved remain partners in the partnership.

Trusts

The trust and trustee must request an STR. This includes corporate trustees.

Joint ventures

Each party to a joint venture must request an STR. The joint venture operator must also request an STR if they are not a participant of the joint venture.

Tax consolidated groups

Where a subsidiary of a tax consolidated group, or a multiple entry consolidated (MEC) group is tendering, the subsidiary and the head company must request an STR.

If the head company of a tax consolidated group is tendering for the contract, its subsidiaries do not need to request an STR.

Member of a GST groups

Where a member of a GST group is tendering, the group representative and the group member must request an STR.

Who should not apply for an STR

The criteria for a satisfactory STR only apply to businesses tendering for Commonwealth Government procurements. An individual who is not in business should not apply for an STR.

Criteria for a satisfactory STR

The information in an STR comes from details on our systems. This may include information provided under Australia’s self-assessment regime.

The PCP specifies the criteria for a satisfactory STR, where you:

• are up to date with registration requirements, which may include    
  • being registered for an Australian business number (ABN) and GST
  • having a tax file number (TFN)    
    • if you are a tendering business or their first-tier subcontractor, you will need to be registered for a TFN, ABN and GST
    • if you are a partner or trustee, including a corporate trustee, you will need a TFN (you may also need to be registered for an ABN and GST if you are carrying on a business in your own right)
• have lodged at least 90% (of each lodgment type) of your obligations due in the last four years of operation (from the date of your request for an STR), including    
  • tax returns
  • business activity statements (BAS)
  • fringe benefits tax (FBT) returns.
• need to pay any undisputed debt of $10,000 or greater by the due date, or have a payment plan in place with us (disputed debts subject to a formal objection, review or appeal will not affect a satisfactory STR).

Note: Reasonable delays in lodgments due to extensions agreed to by us will not affect you receiving a satisfactory STR.

Less than 4 years Australian tax history

If you have an Australian tax record of less than 4 years (for example, if you are a new Australian business or new foreign tenderer) you need to meet additional conditions to obtain a satisfactory STR. This includes making statements relating to:

• being a non-resident with no tax record or a tax record of less than 4 years in Australia
• compliance and payment of Australian and foreign tax obligations
• no tax-related convictions in the last 4 years (applies to Australian and foreign entities).

Ensure you have correctly answered all 3 supplementary statements.

Note: If you are unable to agree to any of these statements, you may still submit your request however you will not receive a satisfactory STR.

Unsatisfactory STR

You will receive a report with your STR showing the criteria that were met or not met. This is for your information only.

If you did not meet the satisfactory STR criteria, you may be able to take corrective action to bring your tax obligations up to date. You may then reapply for an STR the day after the corrective action is recorded in our systems.

How to correct an unsatisfactory STR

These corrective actions may help you to meet the satisfactory STR criteria.

Registration

Ensure you are up to date with registration requirements (ABN, GST, TFN).

You may need to work out which registrations you need.

Outstanding lodgments

Ensure you have lodged at least 90% of all tax returns, FBT returns and BAS due in the last 4 years.

We have information to help you work out if you need to lodge a tax return.

Notify us if lodgment is not required or if you have nothing to report otherwise you may receive an unsatisfactory STR.

Outstanding debt

You can pay any undisputed debt of $10,000 or greater by the due date, or you may be able to set up a payment plan. For help with payment plans go to Help with paying.

If your disputed debt is under review, phone us on 13 28 66.

Partners or trustees of a tendering business

Ensure you have correctly indicated this in your STR request.

Less than 4 years Australian tax history

Ensure you have correctly answered all 3 supplementary statements.

Requesting an STR

Requests to obtain or maintain STRs should be made as early as possible. This allows time for processing before tender closing dates or previous contract expiry dates.

How to apply

How to apply for an STR will depend on whether you:

• are registered with the ATO
• are not registered with the ATO
• have no digital access to the ATO or are applying during an ATO system outage.

To be registered with the ATO means you have a TFN or ABN or both.

Registered with the ATO

You can apply for an STR by accessing ATO online services. You will receive your STR through the same online service within 4 business days.

Note: Corporate trustees that have a TFN, but do not have an ABN cannot apply for an STR online. An STR application can be made by phone. An STR application receipt can be requested during the phone application, and it can be emailed the same day.

Note: If you are applying for an STR as a partner or a trustee of a business, you must indicate this in your STR request.

Not registered with the ATO

No digital access to the ATO or there is an ATO system outage

• For businesses phone 13 28 66
• For tax agents phone 13 72 86 Fast Key Code 1 2 5 1.

If you apply by phone, you will be mailed a paper copy of your STR. It may take longer than 4 business days for you to receive it due to postal delivery time.

If you are applying by phone due to an ATO system outage, your STR will be available in online services when ATO systems are operating again.

Receiving an STR

We will generally process your request for an STR within 4 business days.

If you apply using Online services for agents, Online services for business or myGov, you will receive your STR through the same online service and Statement of tax record screen where you submitted your request.

Statement of tax record screen

The Statement of tax record screen will display a receipt within 24 hours of submitting your request. Once we have processed your request, the Requests section will display both your:

• Statement of tax record specifying whether you have met or not met the satisfactory criteria (you will need to submit your satisfactory STR with your tender)
• Taxpayer report detailing the elements of the PCP criteria you met or did not meet (the report is for your information only and you should not submit it with your tender).

If a receipt does not display within 24 hours of submitting your request, or you do not receive the STR within 4 business days, phone us on:

• 13 28 66 (for businesses)
• 13 72 86 (for registered agents).

STR not received by tender closing date

If you have requested an STR but have not received it by the tender closing date, refer to your tender request documentation to determine what you can do. You may be able to include a copy of your request receipt with your tender and provide your STR within 4 business days after the tender closes.

STR validity

An STR is valid for:

• 12 months from the time of issue – if you have an Australian tax record of 4 or more years
• 6 months from the time of issue – if you have an Australian tax record of less than 4 years.

Your STR must be valid at the closing date of a tender. You may need to provide an updated STR during the life of a contract if this is specified in the terms of the contract.