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TPAR Explained: Lodging Your Taxable Payments Annual Report

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TPAR Explained: Lodging Your Taxable Payments Annual Report

TPAR Explained…

What does TPAR stand for?

TPAR stands for Taxable Payments Annual report.

Why was the TPAR created?

To ensure that all contractors are reporting correctly to the Australian Taxation Office. The information sent to the Australian Taxation Office identifies contractors who are not meeting their tax obligations.

Who needs to lodge a TPAR?

Businesses that make payments to contractors or subcontractors MAY be required to lodge a TPAR depending on what percentage of income from the specific service. To lodge a Taxable payments annual report (TPAR) by the 28th of August each year. For a comprehensive list of the industries, please visit the ATO Website here. 

Know Your Taxable Payments Annual Reporting Obligations

Get Your Free Download TPAR Key Definitions

What industries are TPAR required for?

TPAR Reporting is required if you are in the following industries:

Building and construction services –plumbing, architectural, electrical, plastering, carpentry, engineering etc.

Information technology (IT) services – this includes writing, modifying, testing or supporting software to meet a client's needs, whether on-site or off-site through the internet.

Courier services or road freight services– Any transport that requires labour, including couriering via bicycle.

Cleaning services – interior and exterior cleaning of buildings, transport, machinery, and cleaning for events.

Security, investigation or surveillance services –patrolling, guarding people, premises or property; monitoring security systems, and any investigation specifically related to security and surveillance.

Who needs to lodge a TPAR?

Click Here To Download our Key Definitions for Business Types

What will I need to report?

The invoice that the contractor has sent to you will identify:

1. Their registered Australian business number (ABN)
2. Contractors name and address
3. The gross amount, including GST you paid to them for the financial year.

Contact Chartfords if you have any questions we are happy to help.

How do I lodge a TPAR?

– Online to the ATO
– Accounting Reporting software
– Complete and submit your report through the ATO portal
– Through registered tax and BAS Agent to lodge on your behalf

What does the Australian Taxation Office do with the information?

The ATO uses the data to identify contractors that have:

– not included all their income on their tax return
– not lodged tax returns or activity statements
– not registered GST when they are required to do so
– quoted the wrong ABN on their invoiced

What if I am not required to lodge a TPAR?

You will need to submit Non-lodgement advice.

The TPAR Non-lodgment advice:

– allows you to lodge multiple years on the same form
– allows you to advise when you are not required to in the future and give a reason
– validates information entered
– provides confirmation.

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