What you need to know about the Taxable Payments Annual Report (TPAR).
What is TPAR?
TPAR, or the Taxable Payments Annual Report, is a report due to the ATO annually. It helps the ATO improve tax obligation compliance by identifying paid contractors who have not lodged tax returns or have not reported all their income in their tax returns.
When is TPAR due?
TPAR is due by August 28 every year.
What types of businesses need to submit TPAR?
Historically, TPAR has been a report specific to the building and construction services industry, and to businesses of a mixed nature that may include work in the building and construction services industry.
Businesses providing road freight services for contractor payments, information technology (IT) services for contractor payments, and security, investigation or surveillance services for contractor payments from July 1 2019 may be required to complete and submit their first TPAR by August 28, 2020.
I am a mixed services business - how do I know if I need to submit TPAR?
According to the ATO, if your business provides one or more of the relevant services listed above, you may need to lodge a TPAR. If the total payments are 0% or more of your GST turnover or the bulk of your business is in the building and construction industry you must lodge a TPAR. Note, all businesses have a GST turnover, regardless of whether or not they are registered for GST.
For more information on whether or not your mixed services business will need to submit a TPAR please refer to this article from the ATO.