TPAR due soon: is your business on the ATO’s radar this august?
The Taxable Payments Annual Report (TPAR) is due to the ATO by 28th August and getting it wrong means facing automatic failure to lodge penalties.
Here is a quick, no nonsense breakdown of what it is and whether your business needs to worry about it.
What is it and who needs to lodge?
The TPAR tells the ATO exactly how much you paid independent contractors for their services over the last financial year. The government uses this data to ensure contractors are declaring their full income.
You must lodge a TPAR if you paid contractors to provide any of the following services, and those payments make up 10% or more of your total business income:
Cleaning services (commercial, domestic or industrial)
Courier and food delivery services
Road freight services (trucking, freight, furniture removal)
Information Technology (IT) services (tech support, software setup)
Security, investigation or surveillance services
Note: If you are in building and construction, the threshold is higher - you must lodge if 50% or more of your business income comes from construction services.
What do you report?
You need to report any payments made for contractor labour between 1st July and 30th June. If an invoice includes both materials and labour, you must report the total gross amount (including GST).
You do not report regular employees (they are covered by STP) or invoices where you only purchased materials with no labour attached.
To lodge successfully, your accounting software needs flawless data for every contractor, including their correct legal name, active ABN, address and the exact total paid. Missing or incorrect ABNs will cause the electronic lodgement to fail.
Let us help
Reviewing a year's worth of contractor invoices, verifying ABNs and managing ATO lodgements takes time you probably don't have.
As professional bookkeepers, we can help clean up your supplier data, reconcile your ledger and lodge the report securely on your behalf. Get in touch today to get this sorted well before the deadline.
This information is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided in relation to your own circumstances.
