The Australian Taxation Office (ATO) has reminded businesses that pay contractors for certain services that they may need to lodge a Taxable Payments Annual Report (TPAR) with the ATO by 28 August 2020.
If you’ve paid a tradie or other contractor for building and construction services in the past year, you might need to lodge a Taxable Payments Annual Report (TPAR) by 28 August.
You need to lodge a TPAR if you pay contractors for building and construction services and:
- you earn 50% or more of your business income from building and construction services, or
- 50% or more of your business activity is from building and construction services
However, many other businesses may not be aware that they will be required to lodge a Taxable Payments Annual Report (TPAR) for the first time this year. Due to the COVID-19 pandemic many businesses have had to quickly adapt, and many have needed to contract out more services.
Your business may need to lodge a TPAR if payments were made to either contractors or subcontractors to provide certain services. In previous years, the TPAR applied to businesses that hired contractors to provide building and construction, cleaning and courier services. However, this year, it will be expanded to apply to businesses that pay contractors to provide road freight, information technology, and security, investigation or surveillance services.
If your business provides any of the following services and you pay contractors or subcontractors for these services:
- building and construction
- courier or road freight
- information technology (IT)
- security, investigation and surveillance.
For each contractor you pay you will need to include on your TPAR
- their name
- their address
- their Australian business number (ABN)
- the total amount paid to them, including any GST.
The contractor details you need to report are usually on the invoices used to claim GST credits on your BAS.
How you can lodge your TPAR
- your business accounting software
- the ATO’s Business Portal
- your myGov account (individuals and sole traders only)
- your registered tax professional.
For more information and how to lodge your TPAR click here.
If you own a business and think you may need to lodge a TPAR by the end of August, please contact us.
Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for professional advice.