Business owners are required to report a range of information to the Australian Taxation Office each year. This also includes payments that are made to any subcontractors, consultants and independent contractors. This is done by lodging a ‘Taxable Payments Annual Report‘.
Not everyone needs to do this but certain industries/sectors are required to do so.
Who needs to lodge a TPAR?
If you work in the below areas you are considered to be part of the Taxable Payments Reporting System. For more detailed information, including definitions and examples to see if this applies to you, please review the below links.
- building and construction,
- cleaning,
- courier or road-freight,
- information technology (IT),
- security, investigation, and surveillance services.
What do I need to do?
It is likely you will already be using accounting software to undertake your business bookkeeping. If so you are in a good position to prepare and lodge these reports.
While doing your data entry through the year it is important to record the right information for each contractor you use including their correct business name, address and Australian Business Number. It is also important to check their GST registrations and record/respond correctly.
If you are using the the below accounting software there are good online instructions to assist you with completing this work.
When do I have to lodge a TPAR
If you are required to lodge a TPAR, it’s due by 28th of August each year.
What if I need more help?
Trade Guardian are Canberra’s trusted bookkeepers and here to help you with undertaking this sort of reporting to the ATO. If you need any assistance about the above or have any general questions, please reach out and Contact Us.