Your taxable payments annual report (TPAR) is due soon

Prepare now for your taxable payments annual report (TPAR) lodgement. Whether you lodge your own report directly with the ATO or if you use our lodgement services, this form is due by the 28th August.

What is a TPAR?

A Taxable Payments Annual Report may be required if a business pays subcontractors for services in the following industries:

·         Building and construction services

·         Cleaning services

·         Road freight and courier services

·         Information technology services

·         Security, investigation or surveillance services

The TPAR helps the ATO keep track of payments to contractors and subcontractors by businesses in these industries, with the aim of improving transparency and compliance with tax obligations.

What needs to be reported?

Details of payments made to contractors and subcontractors:

·         their names

·         their addresses

·         the ABN

·         the total amount paid for the year

Payments that don’t need to be reported:

·         payments for materials only

·         incidental labour

·         invoices not paid by 30 June

·         workers under labour-hire agreements

·         payments to employees

·         payments for private and domestic projects

Things to review before finalising your TPAR:

• Make sure you are clear about which suppliers have to be reported on the TPAR and which (if any) can be excluded.

• Check that you have current details for relevant suppliers: ABN, business name and business address.

• Check your supplier reports for the gross amount paid in the financial year and the amount of GST included.

• If you are not already in the habit of checking the ABN and GST registration of all suppliers, now can be a good time to do some checking. Have your suppliers quoted the correct ABN and GST registration status on their invoices?

• Do you have tax invoices for all supplier business-related transactions?

Most accounting software programs allow for the easy setup and maintenance of TPAR relevant supplier groups, making the annual report preparation quick and easy. Talk to us about setting up taxable payments reporting in your software for the lodgement of your TPAR.