The Taxable Payments Annual Report (TPAR) reports to the ATO about payments that are made to contractors for providing services. Some government entities also need to report the grants they have paid in a TPAR.
Contractors can include – subcontractors, consultants and independent contractors.
Contractors can be operating as sole traders (individuals), companies, partnerships or trusts.
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).
The ATO uses this information to identify contractors who haven’t met their tax obligations.
When to lodge – due 28 August annually
There are different Industries that need to report, and different start dates to begin reporting.
You may need to lodge a Taxable payments annual report (TPAR) by 28 August each year if you are a:
– Business providing
- From 1 July 2015 –
- From 1 July 2018 – start RECORDING in software –
- From 1 July 2019 – start RECORDING in software –
- 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)
- mixed services (a business that provides one or more of the services listed above – potentially from 1 July 2015)
If your business provides one or more of the relevant services as listed above, you may need to lodge a TPAR.
Each financial year, you’ll need to work out what percentage of payments you receive, are from any of the services above.
If the total 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.
Even if you are not registered for GST, you’ll still need to check if you need to lodge a TPAR. All businesses have a GST turnover, regardless of whether or not they are registered for GST.
Examples of the types of mixed businesses that may need to lodge a TPAR include:
- Building maintenance;
- Franchisees and retailers;
- Event management.
Select your business type from this list and use our three-step guide to work out if you need to lodge.
Nothing to Lodge?
If you are not required to lodge, you can let us know so that we can update our records and to avoid unnecessary follow up.
Go here to lodge Nil online – https://www.ato.gov.au/TPARnilreport/
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