The Taxable Payments Annual Report (TPAR) is an industry specific report for businesses who are required to report the total payments made to contractors for their services. The ATO will use this information to identify contractors who have not met their tax obligations.
Businesses in industries such as building/construction, cleaning, courier, road freight, information technology (IT), security, investigation or surveillance are required to lodge. If your business provides one or more of the services included in the list above, even if this is not the sole service you provide, you may be required to lodge a TPAR.
Contractors can include subcontractors, consultants and independent contractors. They can be operating as sole traders (individuals), companies, partnerships or trusts.
Each financial year, you’ll need to work out what percentage of payments you receive are from any of the above services.
If the total payments are 10% or more of your GST turnover (or if you are primarily in the building and construction industry) – you must lodge a TPAR. Even if you are not registered for GST, you’ll still need to check if you need to lodge a TPAR. All businesses have a GST turnover, regardless of whether or not they are registered for GST.
Lodgement of the latest TPAR’s are due by the 28th August 2019 if you are in the building/construction, cleaning and courier industries. This report will be based on payments to contractors starting July 2018.
Payments to contractors from the other industries listed above are not required to complete a TPAR until 28th August 2020, with the payments to be listed beginning July 2019.
Information sourced from the Australian Taxation Office (as at 6 August 2019) – link here.
If you have any questions about the information above please contact the team at Abbotts, we will be happy to assist you. You can find details to get in touch with us on our contact us page.