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

HomeInsights


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

15 May

Federal Budget 2024 / 2025

Budget 2024-25 is a pre-election budget for the people with everyone getting a little something to ease cost of living pressures. For business, there is the extension of the $20k instant asset write-off again.


READ MORE READ MORE
13 May

Quick Ways To Boost Your Business’ Cash Reserves

Secured business loans play an important role in supporting small business owners.


READ MORE READ MORE
2 May

Accessing money in your SMSF

The ATO has made a call to professional accountants to help identify and manage illegal early access to superannuation by members of SMSFs.


READ MORE READ MORE