What is a Taxable Payments Annual Report (TPAR)?

Are you aware of the ATO Reporting Requirement due 28 August each year?

What is the TPAR?

The Taxable Payments Annual Report is a report that businesses must submit to the ATO, detailing payments made to contractors for services provided within a financial year. It is mandatory for businesses in specific industries, including construction, cleaning, and courier services. The TPAR aims to provide the ATO with comprehensive information on payments, which helps ensure that contractors are reporting their income correctly and paying the appropriate amount of tax.

Who needs to lodge a TPAR?

Businesses are required to lodge a TPAR if they operate in the following industries:

• building and construction 
• cleaning 
• courier and road freight 
• information technology (IT) 
• security, investigation or surveillance.

If your business provides these services and pays contractors to deliver them, you may need to lodge a TPAR. This obligation extends to businesses of all sizes, from companies, trusts, partnerships to sole traders. The requirement to lodge applies whether the business is registered for GST or not.

What information is required?

The TPAR must include details of payments made to each contractor or subcontractor during the financial year. Key information includes:

• The contractor’s name, address and ABN (Australian Business Number).
• The total amount paid, including GST, and tax withheld where an ABN was not quoted.

When and how to lodge the TPAR?

• It must be lodged annually by 28 August following the end of the financial year.
• Businesses can lodge through their Online Accounting Software, via the ATO’s Business Portal, or through their registered Tax Agent.
• Failing to lodge the TPAR on time or providing inaccurate information can result in penalties issued by the ATO.

To ensure compliance, business should maintain accurate records of all payments made to contractors and subcontractors throughout the year.

For More Information

If you are unsure if this applies to you and your business, please contact an Archer Gowland Redshaw adviser on (07) 3002 2699 | info@agredshaw.com.au