New industries entering the taxable payments reporting system

New industries entering the taxable payments reporting system

If your business provides road freight, information technology (IT), security, investigation, or surveillance services, you will need to lodge a Taxable payments annual report (TPAR) each year to tell the ATO about the payments you make to contractors who use an Australian business number (ABN). You will need to do this even if these services are only part of your business activities.

The first TPAR will be due by 28 August 2020 for payments made from 1 July 2019 to 30 June 2020. In future, you will need to lodge a TPAR by 28 August each year.

The ATO are sending letters out to clients in these industries to advise about the new reporting requirement. These letters will tell you where to find more information, including how to lodge the TPAR.

We can help you prepare for your TPAR by making sure you keep records of the payments made to contractors. You will generally find the information that you need to report on the invoices you receive from the contractors, including the contractor's:

  • ABN, if known
  • name
  • address
  • total amounts paid during the financial year (including GST).

Source: https://www.ato.gov.au/Tax-professionals/Newsroom/Your-practice/New-industries-entering-the-taxable-payments-reporting-system

Amy Bignell, Senior Accountant

MBA BUSINESS SOLUTIONS