TPAR – What is it and are you required to lodge

TPAR – What is it and are you required to lodge

Jul 30, 2022 | Reporting Obligations

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.  

Relevant 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  • contractors who do not quote an Australian business number (ABN)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.  

Need Help?

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.  

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Changes to Superannuation effective from 1 July 2022

Changes to Superannuation effective from 1 July 2022

Jun 8, 2022 | Superannuation

The end of the financial year is fast approaching. There are some important changes to superannuation that come into effect from 1 July 2022 which all businesses need to be prepared for.  

Minimum Earnings Threshold

Currently, an adult employee must earn a minimum of $450 per month before super guarantee is payable on their wages.  From 1 July 2022, this minimum eligibility threshold is being removed.  You will need to pay super guarantee on all earnings for adult employees.  

For employees under the age of 18, they will still be required to work more than 30 hours in a week to be eligible for super guarantee.  

Super Guarantee Rate

From 1 July 2022, the super guarantee rate is also increasing from 10% to 10.5%.  This new rate applies to all payments you make to employees on or after 1 July. This is regardless if some or all of the pay period is for work performed prior to 1 July.  

The super guarantee rate is currently legislated to increase by 0.5% each year until it reaches 12% from 1 July 2025. 

 

For Xero payroll users, these changes will be automatically implemented in Xero from 1 July 2022.   For other software, please refer to the provider.  It is important to ensure these changes are implemented correctly in your system.  

Other Important Dates for Super

In order to claim a tax deduction for super in the current financial year it must be paid prior to 30 June.  Super is only deemed to be paid when it is received by the super fund. If you are using Xero for batch super payments, it is recommended that the batch be authorised and approved by 2pm AEST on Tuesday 14th June 2022.

If you have any questions regarding these changes to superannuation, or how to implement them into your business or software, book a discovery call today.