Taxable Payments Annual Report (TPAR) for 2021
The taxable payments annual report (TPAR) reports to the ATO information about payments made to contractors for certain services.
TPAR for the building and construction industry has been in place for some years. In recent years, cleaning services, courier services and some government entities have been added to the system.
Last year, taxable payments reporting was expanded to include three new industries: road freight services, information technology services, and investigation or surveillance services.
Has Your Business Made Deliveries to Customers?
Many businesses started making deliveries during the 2021 financial year for the first time. Other businesses may have found that their deliveries increased dramatically. If your business has earned substantial income from making deliveries, you may need to submit a taxable payments annual report for the first time.
If more than 10% of your turnover has been earned from deliveries (or any other taxable payments reporting industry), you’ll need to submit a TPAR by 28 August 2021.
Essential Information Included in the TPAR
1. Contractor ABN
2. Contractor name
3. Contractor address
4. Total for invoices relating to services only or a combination of services and materials
5. Total GST included
6. Business to business transactions only
7. TPAR is based on invoices paid from 1 July to 30 June (do not include unpaid invoices)
8. If the business provides mixed services, then if payments to contractors total 10% or more of GST turnover in any of the required industries, the business is required to report
Contractors include subcontractors, consultants and any other independent contractor who is not an employee.
Unsure if You Should Complete a TPAR?
If your business offers services in any reporting industry, either as the primary type of income or part of your business mix, talk to us about the contractors you pay.
Check the ATO taxable payments annual report webpage for full details of all TPAR industries and all the services that must be included in the report.
Most accounting software programs include a means of preparing the TPAR from within the software once all the required details about contractors paid throughout the year have been entered.
Need help in working out if you have to report this year? Talk to us. We can also set up your software for correct reporting of contractors for TPAR and review the report before submitting it to the ATO on your behalf.