You may need to report payments you made to contractors to the ATO in a Taxable payments annual report (TPAR).
You’ll need to lodge a TPAR by 28 August 2019 if:
- your main business activity is in the building and construction industry and you paid contractors to provide building and construction services
- you provide cleaning or courier services and you paid contractors to provide cleaning or courier services.
The TPAR tells the Tax Office about payments that are made to contractors for providing services.
Contractors can include subcontractors, consultants and independent contractors. They can be operating as sole traders (individuals), companies, partnerships or trusts.
The details you need to report about each contractor are generally found on the invoice you should have received from them. This includes:
- their Australian business number (ABN)
- their name and address
- gross amount you paid to them for the financial year (including any GST).
- The GST claimed
The Tax Office uses this information to identify contractors who haven’t met their tax obligations.
You may also need to report payments to contractors if you provide mixed services, that is, cleaning or courier services are only part of the services your business provides. Information is available on our website to help you work out if you need to report
Source: August 2019 newsletter Author: Patricia Glenn
