Don't Miss the Deadline! Taxable Payments Annual Reports (TPAR) Due August 28, 2023
As the end of August approaches, Australian businesses are reminded of an important deadline—Taxable Payments Annual Reports (TPAR) must be lodged by August 28, 2023. This annual reporting requirement, mandated by the Australian Taxation Office (ATO), is essential for businesses that make payments to contractors or subcontractors in specific industries. Wondering whether your business needs to file a TPAR? Read on to find out.
Who Needs to Lodge a TPAR?
Businesses that make payments to contractors or subcontractors may be required to lodge a TPAR, depending on the percentage of income derived from the specific service. To determine if you need to file, it's crucial to understand your industry's eligibility. For a comprehensive list of industries and more details, please visit the ATO Website here.
What Industries Require TPAR Reporting?
TPAR reporting is mandatory for businesses in the following industries:
Building and Construction Services: This includes plumbing, architectural, electrical, plastering, carpentry, engineering, and related services.
Information Technology (IT) Services: IT services encompass writing, modifying, testing, or supporting software to meet a client's needs, whether on-site or off-site through the internet.
Courier Services or Road Freight Services: This category includes any transport services that require labor, including bicycle couriering.
Cleaning Services: Both interior and exterior cleaning of buildings, transport, machinery, and cleaning for events.
Security, Investigation, or Surveillance Services: This pertains to patrolling, guarding people or property, monitoring security systems, and any investigations specifically related to security and surveillance.
What Information Should You Report?
When lodging a TPAR, you'll need to provide the following details from the invoice that your contractor has sent to you:
Their registered Australian Business Number (ABN).
Contractor's name and address.
The gross amount, including GST, that you paid to them during the financial year.
How Can You Lodge a TPAR?
You have several options for lodging your TPAR:
Online through the ATO website.
Via your accounting platform such as MYOB or XERO
Completing and submitting your report through the ATO portal.
At SALO we can assist as a registered tax to lodge on your behalf.
Why Does the ATO Collect TPAR Data?
The Australian Taxation Office uses the information provided in TPARs in their data matching to identify contractors who may have:
Failed to include all their income on their tax returns.
Not lodged tax returns or activity statements.
Neglected to register for GST when required.
Quoted the wrong ABN on their invoices.
Ensuring compliance with TPAR reporting is crucial for both businesses and contractors, as it helps maintain transparency and fairness in the tax system.
Don't forget the deadline—August 28, 2023, is approaching fast. Make sure to lodge your Taxable Payments Annual Report (TPAR) to stay compliant with the ATO's requirements. For more information and assistance, please fee free to contact us.