If your business engages contractors or subcontractors, Taxable Payments Annual Reports (TPAR) are due by 28 August 2021, for the following industries:
- building and construction
- courier services
- road freight
- IT and security
- investigation or surveillance.
As businesses have pivoted over the past year, thanks to the pandemic, some businesses may have started to engage contractors in roles they had not considered in the past.
It is important to remember that TPAR reporting obligations apply whether the contractor is engaged as a sole trader (individuals), company, partnership or trust.
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).
If you are using an online accounting platform, such as Xero, TPAR can be prepared directly via the accounting system, then uploaded to the ATO Business Portal. Although a slower process, paper forms are also available to download and complete. Your Tax or BAS agent can help you lodge the report too.
TPARs are not required in scenarios where you are;
- an individual not running a business and you make payments to contractors for services – for example, if you are a homeowner building or renovating your own home
- a business making payments to contractors for services for private purposes – for example, cleaning your own home.
TPARs are required to be lodged by 28 August each year. You can find additional information about TPAR lodgements via the ATO website.
If you have questions or need support lodging your TPAR, get in touch with the team at Victor Bimrose Accountancy ASAP.
At VBA we specialise in strategic tax advice, offering tax and financial reporting for individual income earners, family businesses, tradies and construction companies.
Victor Bimrose Accountancy Pty Ltd (ASIC No. 1259423) ABN 53 010 957 294 is a Corporate Authorised Representative of Merit Wealth Pty Ltd ABN 89 125 557 002, Australian Financial Services Licence Number 409361.
Mark Foxley-Conolly (ASIC No. 1259421) is a Limited Authorised Representative of Merit Wealth Pty Ltd ABN 89 125 557 002, Australian Financial Services Licence Number 409361
General Advice Warning: This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.If you have employees, you need to be across these important updates