What is TPAR?
If you are running a business providing building construction services, cleaning services or courier services, you will need to lodge a Taxable payments annual report (TPAR) by 28 August each year. Penalties may apply for not lodging your annual report by the due date.
The TPAR contains information about payments to contractors that businesses in these industries must report to the ATO.
With the previous 28 August deadline now well overdue, the ATO has confirmed that more than 60,000 businesses have yet to lodge their TPAR, with failure-to-lodge penalties looming.
ATO assistant commissioner Peter Holt has urged business owners to lodge immediately, noting that the taxable payments reporting system (TPRS) aims to create a level playing field for contractors.
You will need to lodge TPAR if you:
- are a business in the building and construction industry and have made payments to contractors for building and constructions services, or
- provide cleaning services and made payments to contractors for cleaning services, or
- provide courier services and made payments to contractors for courier services, or
- provide road freight services and made payments to contractors for road freight services, or
- provide information technology (IT) services and made payments to contractors for IT services, or
- provide security, investigation or surveillance services and made payments to contractors for those services, or
- provide mixed services (i.e. one or more of the services listed above).
Contractors can include subcontractors, consultants and independent contractors. They can be operating as sole traders, companies, partnerships or trusts.
The detail that you need to report about each contractor can be found on the invoice you should have received from them, and includes:
- Australian business number (ABN), if known,
- Name and Address and
- The gross amount you paid to them for the financial year (including any GST).
The Taxable payments report can be lodged online or by completing a paper form. If you are unable to lodge online, you can order the TPAR paper form from the ATO publications ordering service.
If you would like any further information or assistance with lodging your taxable payments annual report please contact us on 1300 885 761.