Some days it feels like the list of obligations never ends for small business owners. One of these obligations is TPAR, however, it does not apply to all businesses, so you need to ensure it does not get overlooked.
What is TPAR
Taxable payments annual report or TPAR is an industry-specific report for businesses to report the total amounts paid to contractors.
TPAR was introduced to assist the ATO with their data matching processes. The reach of TPAR has been extended over the years to include more industries.
If your business is in the following industries, you may need to lodge a TPAR
- Building and constructions services
- Cleaning services
- Road freight services
- Courier services
- Information technology services
- Security, investigation, or surveillance service
It is important to note that you may need to lodge a TPAR if you provide any of these above services, even if it’s not your main business activity.
Payments to Include
The total amount of payments to contractors needs to be reported. This includes invoices for both labour and materials.
Payments not Included
You do not need to include the following payments in your TPAR:
- Payment for materials only
- Incidental labour
- Unpaid invoices as at 30 June
- workers engaged under a labour hire or on-hire arrangement.
- PAYG withholding payments
- payments to foreign residents for work performed in Australia.
- foreign residents for work performed overseas
- contractors who do not quote an Australian business number (ABN)
- payments in consolidated groups
- payments for private and domestic projects.
Due Date for TPAR Lodgement
You must submit your return by 28 August each year.
How to Lodge
You can lodge your return via the ATO Portal, via your accounting software or through your BAS or Tax Agent.
You may still be required to lodge a nil return even if you have any paid any reportable payments to contractors throughout the year.
If you need any help with determining if you need to lodge a return or are unsure on payments are to be included, contact us today.