Does your business hire contractors? Meet your TPAR obligations – 28 August deadline
What is a Taxable Payments Annual Report (TPAR)?
If your business has an ABN and makes payments to contractors for services essential to your business, you may be required to report these details to the ATO via a TPAR.
The ATO uses information from business TPARs to help identify under-reporting, GST compliance and assist sole traders with return pre-fill information.
Do I need to lodge a TPAR?
Businesses in the following industries that may need to file a TPAR for payments to contractors include:
- building and construction
- cleaning/maintenance
- road freight
- couriers
- information technology
- security, investigation or surveillance
What do I need to report?
For each relevant payment, you must report:
- Name, ABN and address of the contractor
- Total amount paid to the contractor
- Total tax withheld if ABN wasn’t given
Some exclusions apply, for example:
- Invoices received before 30 June, but paid after 30 June
- Payments reported via PAYGW or Single Touch Payroll
and more…
Penalties may apply for missed deadlines or incorrect information. Click here for more information on your TPAR obligations.
If you need help with your TPAR obligations, contact us here.