Taxable payments annual report (TPAR)
If your business makes payments to contractors or subcontractors, you may need to lodge a Taxable payments annual report (TPAR) by 28 August each year.
The taxable payments reporting system aims to create a level playing field – to prevent dishonest operators from gaining an unfair advantage over the majority. The information we collect in the TPAR allows us to identify contractors who are not meeting their tax obligations.
You need to know about TPAR if your business provides any of the following services, even if it’s just part of the services you provide each year:
- building and construction services – this category is very broad; it includes plumbing, architectural, electrical, plastering, carpentry, engineering, and a wide range of other activities (for full list, see Examples of building and construction services)
- cleaning services – this includes interior and exterior cleaning of structures, vehicles, machinery and cleaning for events.
- courier services or road freight services – this includes delivery of items or goods (such as parcels, packages, letters and food) by motor vehicle, bicycle or on foot, the transportation of freight by road, truck hire with driver, and road vehicle towing services.
- information technology (IT) services – this includes writing, modifying, testing, or supporting software to meet a client’s needs, whether on site or remotely through the internet
- security, investigation, or surveillance services – this includes patrolling and guarding people, premises or property; watching or observing an area and monitoring security systems; and investigation specifically related to security and surveillance, not just information gathering.
The TPAR details payments made to contractors for providing services.
Contractors can include subcontractors, consultants and independent contractors. They can be operating as sole traders (individuals), companies, partnerships, or trusts.
The details you need to report about each contractor are generally found on the invoice you should have received from them. This includes:
- their Australian business number (ABN), if known
- their name and address
- gross amount you paid to them for the financial year (including any GST).
ATO may impose penalties for late or non-lodgement of TPAR.
Contact Expert Tax on 0449 952 855 or 1300 869 829 for lodgement of TPAR for your business.