Taxable Payment Annual Report (TPAR)

Taxable Payment Annual Report (TPAR)

Taxable Payments Annual Report (TPAR) Businesses that engage in hiring contractors in certain industries, may need to lodge an annual Taxable Payment Report to ATO every year by 28th of August. In ATO terms, contractors include: Subcontractors Independent Contractor Consultants…

In ATO terms, contractors include:

  • Subcontractors
  • Independent Contractor
  • Consultants

Regardless of which business structure your contractor operates, you still must report they earnings (invoices) to ATO.

Who Needs to lodge a TPAR?

As mentioned earlier that now only certain industries need to report this if they engage a contractor in, they business. These industries are:

  • Building and Construction
  • Cleaning services
  • Courier and Freight
  • Information Technology (IT)
  • Security, investigation, and surveillance
  • More will be added soon

Due Date for the report?

The report is due every year on 28th of August. If you do not comply with the due date, ATO is now imposing penalties for the failure to lodge on time.

How to Lodge the TPAR report?

If you are using Xero or MYOB, the system is built to do the reporting automatically for you if you have set them up properly. However, you can also lodge the report through MYGOV business account manually.

What to include in your TPAR report?

The main aim of the compliance is to ensure that contractors are accounting the income correctly and reporting it to ATO. TPAR is a perfect example of data matching by ATO to avoid any fraud or tax liability. Usually, the report would have following elements:

  • ABN
  • Contractor Name or company name
  • Address
  • Total Amount paid
  • GST portion- if the contractor is GST registered


More Posts

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top