If your business provides any of the following services and makes payments to contractors or subcontractors, you may need to lodge Taxable Payments Annual Report (TPAR) by 28 August each year.
- Building and Construction Services
- Cleaning Services
- Courier Services or Road Freight Services
- Information Technology (IT) Services
- Security, Investigation or Surveillance Services
Purpose of TPAR
The purpose of TPAR is to prevent dishonest operators from gaining an unfair advantage over the majority – Simply, trying to avoid undeclared income.
Payments and details you need to report
The Payments you made to contractors for the financial year should be reported (not unpaid invoices as of 30 June)
The Details you need to report for each payee include the:
- Name (Business name or Individual’s name)
- Total amounts for the financial year of the
a. Gross amount paid (including GST plus any tax withheld)
b. Total GST you paid
c. Total tax withheld where ABN was not quoted.
Penalties for non-lodgement and late lodgement
If you fail to lodge by the due date (28 August each year), penalties can apply.
It is important that TPAR is lodged on time and correctly.
If this is your first time preparing TAPR or you are not sure how to prepare TPAR, please feel free to contact us.