Businesses to report contractor payments under the Taxable payments reporting system

Supporting and helping businesses is a priority for us. We understand businesses this year are facing unprecedented challenges. This is why we are working to level the playing field.

In 2018 the Taxable Payments Reporting System (TPRS) was expanded from the building and construction industry to businesses providing:

  • cleaning services
  • courier services.

In 2019 it expanded to include

  • road freight
  • IT
  • security, investigation and surveillance services.

This expansion helps ensure honest businesses aren’t disadvantaged by making sure contractors are reporting their correct income and paying the right amount of tax.

You may need to complete a Taxable payments annual report (TPAR) by 28 August if your business:

  • pays contractors or sub-contractors to provide these services on your behalf
  • charges your customers for these services.

However, this will only apply if your business provides:

  • building and construction services
  • cleaning services
  • courier or road freight services
  • IT services
  • security, investigation and surveillance services.

If your business is offering new or expanded services in response to COVID-19 restrictions, you may also need to complete a TPAR.

Webinars

Our new webinars will help you:

  • work out if your business will need to complete a TPAR
  • understand how to prepare, record and report your TPAR.

We are committed to providing businesses and contractors with a tailored approach which offers extra support to those in need.

Find out about:

Record keeping

Keeping good records throughout the year makes lodging a TPAR quick and simple. You should keep records of each contractor payment including:

  • their name
  • their address
  • their Australian business number (ABN)
  • the total amount paid to them, including any GST.

These details are usually on the invoices used to claim tax deductions for your tax return and GST credits on your BAS.

We have new record-keeping guidance for businesses needing to complete a TPAR.

How to report

Report through our online services or business software that offers the TPAR. You can also contact your registered tax professional who can lodge a TPAR on your behalf.

See also:

Last modified: 24 Jun 2020QC 63022

Leave A Reply