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:

building and construction services cleaning services - for contractor payments from 1 July 2018 (first report due by 28 August 2019)
courier services - for contractor payments from 1 July 2018 (first report due by 28 August 2019)
road freight services – for contractor payments from 1 July 2019 (first report due by 28 August 2020)
information technology (IT) services – for contractor payments from 1 July 2019(first report due by 28 August 2020)
security, investigation or surveillance services – for contractor payments from 1 July 2019 (first report due by 28 August 2020)

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

16 Jul

Small Business Productivity: Industry & Regional Trends

Building on the findings from Xero Small Business Insights (XSBI) report, Small business productivity: Trends, implications and strategies, this special report presents industry and regional labour productivity data for small businesses.

Is your family home really tax free?

The main residence exemption exempts your family home from capital gains tax (CGT) when you dispose of it.

Earned an income from the sharing economy?

It’s essential that any income earned from sharing economy platforms such as Airbnb, Stayz, Uber, etc., is declared in your tax return.