What is TPAR?
The Taxable Payments Annual Report (TPAR) was created by the Australian Taxation Office (ATO) to curb the underreporting or non-reporting of income by contractors. Businesses and government entities that pay contractors may need to report these payments to the ATO by 28 August each year.
Contractors can include subcontractors, consultants, and independent contractors, and they can operate as sole traders, companies, partnerships, or trusts. Payments to employees are not included in TPAR.
Who Needs to Lodge TPAR?
Various business types must lodge TPAR, and understanding specific reporting scenarios is essential. Click the items in the list below to learn more about which services are included, examples of those services, and other relevant information about income derived from each service. You can also work out if you need to lodge a TPAR here.
- Building & construction services
- Cleaning services
- Courier services
- Information technology services
- Road freight services
- Security, investigation, or surveillance services
Record Keeping
Accurate record-keeping is crucial for TPAR reporting. You will need the following information:
- Contractor name
- Contractor address
- Contractor Australian Business Number (ABN)
- The amount paid to the contractor, including goods and services tax (GST)
If you use accounting software, check with your advisor to ensure it is correctly set up for TPAR reporting. If you need assistance determining your TPAR obligations or lodging your report, please contact us.
When Your Business Provides TPRS Services and Related Services
If your business offers both courier and road freight services, combine the payments for these services when determining your need to lodge a TPAR. For businesses providing TPRS services alongside other services, calculate the percentage of payments received for TPRS services each financial year to determine your reporting requirements. This does not apply to building and construction services.
- If payments for TPRS services are 10% or more of your business income: you must lodge a TPAR.
- If payments for TPRS services are less than 10% of your business income: you do not need to lodge a TPAR.
To learn more click here.
If You Don’t Need to Lodge TPAR
If you do not need to lodge TPAR, you can submit a TPAR non-lodgment advice form through ATO online services. This form allows you to:
- Notify multiple years on the same form
- Indicate when you do not need to lodge in the future
- Provide a reason for not lodging
- Validate information entered
- Receive a reference number for confirmation
- Track your submission in the lodgment history tab
You can find more information on non-lodgment advice here.
For additional assistance, please contact us. We are here to help.
