Does your business make payments to contractors or subcontractors? Depending on the industry you’re in, you may need to report these payments by lodging a taxable payments annual report (TPAR) with the ATO. The TPAR is due by 28 August each year, so read on to learn more about it, what payments you might need to report and how BlueRock can help.
Why Does The ATO Collect TPAR Information?
It’s all about the ATO identifying contractors who don’t fulfil their tax obligations. Contractors and subcontractors submit their invoices to get paid by a business. These payments then get reported annually via a TPAR, so the ATO can work with contractors to help them correctly report their income. This allows the ATO to level the playing field, ensuring businesses aren't disadvantaged by competitors who don't pay the right amount of tax.
Does Your Business Need to Lodge a TPAR?
Businesses lodge a TPAR for payments made to contractors for services. It includes subcontractors, consultants and independent contractors operating as sole traders (individuals), companies, partnerships or trusts. For the year ended 30 June 2022, businesses in the following industries need to report the total payments made to each contractor for the specified services each year. These are the industries which are required to report:
- Security, Investigation or Surveillance services
- IT Services
- Road freight
- Courier
- Cleaning
- Building and construction
Get Help With Your ATO TPAR Lodgement
Taxable payments annual reports for FY22 need to be submitted by 28 August 2022.
If you have any queries about TPAR, or would like one of our experienced BlueRock Accountants to prepare and submit your report, please don’t hesitate to contact us .
