It’s time to check if your business needs to lodge a Taxable payments annual report (TPAR) for payments made to contractors providing the following services:
- Building and Construction services.
- Courier services.
- Cleaning Services.
- Road freight services.
- IT services.
- Security, investigation and surveillance services.
- Government Grants.
TPARs are due on 28th August each year and penalties may apply if not lodged by the deadline.
Do I need to submit a TPAR?
If your business obtains more than 10% of its revenue from one of the above services and engages Australian-based contractors, you may be required to submit a TPAR. Contact your bookkeeper and they will determine if you need to report or not. They will then prepare the report for you, if required.
What are Taxable Payments Annual Reports?
TPAR informs the ATO about payments that are made to contractors for providing services. Industries currently required to report TPAR are listed in the table below.
Contractors can include subcontractors, consultants, and independent contractors. They can be operating as sole traders (individuals), companies, partnerships, or trusts.
The ATO uses this information to identify contractors who have not met their tax obligations.
What has to be reported?
PAR requires the business to outline the following:
- The contractor’s name (that appears on the invoice the contractor provided).
- The contractor’s Australian Business Number (ABN).
- The contractor’s address (if known).
- The total amount paid over the income year.
- The amount of any Goods and Services Tax (GST).
- There are additional reporting requirements for government entities reporting grants.
