If your business offers the following services, even if it is only part of your full-service offering, you are obligated to lodge a taxable payments annual report to the ATO by the 28 August 2021:



• A business in the BUILDING & CONSTRUCTION industry and have made payments to contractors or sub-contractors for building & construction services or labour
• A business who provides CLEANING SERVICES and made payments to contractors for cleaning services
• A business who provides COURIER SERVICES and made payments to contractors for courier services
• A business who provides INFORMATION TECHNOLOGY and made payment to contractors for IT services
• A business who provides SERCURITY, INVESTIGATION or SURVEILLANCE services and made payment to contractors for these services.

Put simply, the TPAR is an industry specific report declaring the annual total amount of payments made for companies who pay contractors for services to complete work on their behalf. The ATO uses this information to data match the annual income declared by contractors in an effort to improve compliance.

The TPAR can be used by the ATO to help identify if a contractor has not included all of their income on their tax return, if they have failed to lodge tax returns, quoted an incorrect ABN or have not registered for GST.

Generally speaking, you are required to lodge a TPAR if you are in one of the above industries and:

• You have an active Australian Business Number (ABN)
• You have made payments to contractors who have completed a service on your behalf.

Not all payments need to be reported however. Payments that do not need to be included are:

• Payments solely for materials
• Payments within a consolidated group
• PAYG withholding payments
• Contractors who did not provide an ABN 
• Payments for private and domestic projects
• Incidental Labour
• Unpaid invoices as of 30 June

Details required for each contractor include:

• Contractor name 
• ABN
• Address
• Total amount paid
• Total GST paid
• Total tax withheld if an ABN was not quoted.

If you need some assistance completing your TPAR and/or would like a quote, please contact queries@evolveonlinebookkeeping.com.au or visit our website: https://www.evolveonlinebookkeeping.com.au/  We would be more than happy to help you.