The Taxable Payments Annual Report (TPAR) is something that businesses who make payments to contractors may need to submit to the ATO. The TPAR details payments that a business has made to contractors or subcontractors for services provided in a financial year. TPAR lodgement must be done by 28 August each year, so keep reading to find out if your business needs to lodge and what’s involved in TPAR reporting.
Who Needs to do a TPAR Lodgement?
Businesses in certain industries must lodge the TPAR each year if they have made payments to contractors or subcontractors for services provided. The industries that are required to lodge the TPAR include:
- Building and construction services
- Cleaning services
- Courier or delivery services
- Information technology (IT) services
- Security, investigation, or surveillance services
If your business operates in one of these industries and you have made payments to contractors or subcontractors for services provided, you will need to lodge the TPAR. Even if you’re not in these industries, but you’ve made payments to contractors for the above services, you likely will need to prepare a TPAR lodgement.
How to Prepare and Lodge the TPAR Report
The TPAR report includes the name, address and ABN of each contractor, the total amount paid to each contractor, and the total GST included in those payments. Preparing and lodging the TPAR can be a time-consuming process, but there are a few steps you can take to make the process easier:
1. Check your accounting software
Some accounting software packages (such as Xero ) prepare and lodge electronic TPARs.
2. Review Your Records
Review your records and identify all contractors or subcontractors that you have made payments to for services provided during the financial year. Make sure you keep accurate records including their name, ABN, contact details, business address and the total amount paid to them.
3. Calculate the Total Payments
Calculate the total amount paid to each contractor or subcontractor for services provided during the financial year. Make sure you include all payments, including any GST included in those payments.
4. Lodge the TPAR
Lodge the TPAR with the ATO by 28 August each year. Make sure you lodge the report on time to avoid penalties.
It’s Time To Prepare and Lodge Your TPAR Report
Before you lodge your TPAR report, make sure to review your accounting software reporting capability, review your records, calculate the total payments, and lodge the report on time to avoid penalties. Our expert accountants are here to assist you with TPAR lodgement and preparation, so get in touch today.
