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 (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 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 setup 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.
Yield Business Advisory
Yield Business Advisory has a team of qualified experienced professionals to guide clients through the many challenges they may face.
We offer comprehensive business advice and financial solutions, and can assist in the following areas:
- Business and product profitability reviews
- Analysis of key performance indicators
- Analysis of industry benchmarking
- Assist with the purchase and sale of a business
- Bank finance and funding reviews
- Employer obligations
- Business restructuring
- Strategic planning
- Asset protection strategies
- Business valuations.
- Family and business succession and estate planning
Contact us today to see how we can help you and your business.
Phone: 08 8562 4332
Email Yield Business Advisory