TAXABLE PAYMENTS ANNUAL REPORT TIPS

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 collected in the TPAR allows the Australian Taxation Office 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 (see full list)
  • 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 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).
  • government entities.

Reduce the burden and stress of financial reporting

Did you know accounting software like Xero and MYOB can be set up to manage your Taxable Payments throughout the year? Let our expert team help streamline your reporting obligations by ensuring your software is right for you and set up to manage your obligations.

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