Do you run a business in the building and construction industry?

HomeBLOG


Do you run a business in the building and construction industry?

The ATO has just announced that it will begin contacting businesses in the building and construction industry who have not lodged their Taxable Payments Annual Report for the 2018 and prior financial years.


What is it? Do you need to report? What information should you report? What if you haven't lodged your report? We answer these questions and more.

What is TPAR?

TPAR, or the Taxable Payments Annual Report, is an industry specific report for businesses in the building and construction industry (and soon other industries) who are required to report the total payments made to contractors for providing services. Do you need to report? You may need to lodge a Taxable payment annual report (TPAR) by 28 August each year if you are a business providing:  

What information do you need to report?

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), if known
  • their name and address
  • gross amount you paid to them for the financial year (including any GST).

Contractors can include subcontractors, consultants and independent contractors. They can be operating as sole traders (individuals), companies, partnerships or trusts.

What does the ATO do with this information?

The ATO use this information to identify contractors who haven't met their tax obligations by declaring the income on their tax return.

What do you do if you haven’t lodged it yet?

The ATO can impose a penalty where you fail to lodge a report on time. The amount of the penalty is dependent on the size of the business and the period the report is overdue.

Need help? Please contact SMART Business Solutions on 0359 11 7000 or reception@smartbusinesssolutions.com.au Want to grow your business & improve cashflow? You need SMART solutions for YOUR business, not just annual tax compliance! Get the SMART team working with you. Call SMART Business Solutions today on 03 5911 7000


Related News

14 Dec '20

2021 Investment Risks & Opportunities

With the borders between the State and Territories all but open and 2021 in sight, there is a hunger for a return to normal. With Australia's desire to ‘get on with things,' sentiment reached its highest level since November 2013 and Christmas spending is expected to be consistent with previous years.


READ MORE
18 Nov '20

Tax deductions for investing in your business

Stimulating investment is high on the Government’s agenda. To encourage spending, the 2020-21 Budget introduced a measure that allows businesses to immediately deduct the cost of new depreciable assets and the cost of improvements to existing assets in the first year of use.


READ MORE
17 Nov '20

JobMaker Hiring Credits: What we know so far

We’ve had quite a few questions about the JobMaker hiring credit announced in the 2020-21 Federal Budget. The legislation enabling the JobMaker scheme has not passed Parliament as yet and until this occurs, the JobMaker rules are not certain and may change.


READ MORE