A Taxable Payments Annual Report (TPAR) tells the ATO about contractor payments for services. This includes subcontractors, consultants and independent contractors who could be either sole traders (individuals), companies, partnerships or trusts.
You may be required to lodge TPAR by 28 August if your business provides:
- building and construction services
- cleaning services for contractor payments from 1 July 2018 (first report due by 28 August 2019)
- courier services for contractor payments from 1 July 2018 (first report due by 28 August 2019)
- road freight services for contractor payments from 1 July 2019 (first report due by 28 August 2020)
- information technology (IT) services for contractor payments from 1 July 2019 (first report due by 28 August 2020)
- security, investigation or surveillance services for contractor payments from 1 July 2019 (first report due by 28 August 2020)
The contractor details you need to report include:
- their ABN
- their name and address
- the gross amount you paid to them for the financial year (including any GST)
The ATO uses this information to identify contractors who haven’t met their tax obligations.
If your business supplies a mix of services, you should work out the percentage of payments received from any of the above services.
If your total contractor payments are 10% or more of your GST turnover (or if you are primarily in the building and construction industry) – you must lodge a TPAR.
Remember that all businesses have a GST turnover, regardless of whether or not you are registered for GST.
Additionally, if you are a government entity you may also need to use a TPAR to report grants paid.
If you are not sure whether you need to report you can contact us or visit the ATO website.
