Some businesses who make payments to contractors may need to lodge a Taxable Payments Annual Report (TPAR) to the ATO.
Importantly, for the year ended 30th June 2023, the lodgment deadline is fast approaching.
TPARs must be lodged by the 28th August 2023.
Financial penalties may apply if they are not lodged on time.
What is a TPAR?
It is an annual report that requires businesses to disclose payments made to contractors who provide services in specific industries. Contractors may include subcontractors, consultants and independent contractors. By obtaining this data, the ATO can cross-reference the information reported by businesses against individual contractors’ tax returns, reducing the likelihood of tax evasion within certain industries in Australia.
Which businesses may need to lodge a TPAR?
Businesses who provide either of the following services may need to lodge a TPAR:
- Building and Construction services
- Cleaning services
- Road Freight and Courier services
- Information Technology services
- Security, Investigation or Surveillance services
What information needs to be lodged?
Records of payments made to all contractors, such as their name, ABN, contact details, bank details and the total amounts paid (including GST and any tax withheld) will need to be disclosed.
How to lodge your TPAR?
TPARs can be lodged either online through the ATO’s online services, by paper form or a Tax/BAS agent can help lodge a TPAR on your behalf.
If you require assistance with preparing your TPAR, please do not hesitate to contact our office.