The Taxable Payments Annual Report (TPAR) is a report Businesses from specific industries must submit to the ATO annually by the 28th of August each year. The report provides a list of all payments made to each contractor throughout the year.
The main purpose of the TPAR is to ensure that End of Year work and Tax Returns within the selected industries are properly lodged and that the right income amounts are declared. The ATO uses these reports in conjunction with Tax Returns lodgements and data matching systems, to detect contractors who are not correctly lodging their Tax Returns, or not including all income on their Tax Returns.
Industries Required to Report
FY2013 Building & Construction Industry
Businesses operating in the Building and Construction Industry, are required to report all payments to subcontractors who provide building services. Contractors can be sole traders (individuals), companies, partnerships or trusts.
A list of the reportable services is available on the ATO Website.
Businesses in this industry are required to report:
- If in the current financial year, more than 50% of their business income comes from providing building and construction services;
- If in at least one of the two past financial years, more than 50% of their business income was a result of providing building and construction services.
FY 2019 Cleaning Businesses
Businesses that provide Cleaning Services need to report payments made to contractors that are wholly or partly for cleaning services. Cleaning services include any of the following activities undertaken on a building, residence, structure, place, surface, transport/vehicle, industrial machinery or equipment events and exhibitions.
A list of the reportable services is available on the ATO Website.
Note: ‘Events’ include staging of sporting, cultural, scientific, technological, agricultural or entertainment
- Interior cleaning and exterior cleaning (except sandblasting or steam cleaning)
- Carpet cleaning
- Chimney and Gutter cleaning
- Road sweeping, street, parks and park facilities cleaning
- Swimming pool cleaning
FY 2019 Couriers
Businesses that provide Courier Services need to report payments made to contractors that are wholly or partly for courier services. Courier services include activities where items or goods are collected from, and/or delivered to, any place in Australia using a variety of methods including by truck, car, station wagon, van, ute, motorcycle, motorised scooter, bicycle or other non-powered means of transport, or on foot. Courier services do not include:
- Passenger transport services e.g. buses and taxis
- Transporting of blood, blood products, organs or tissue
- Freight transport
A list of the reportable services is available on the ATO Website.
FY2020 Security Providers | Road Freight Transport | Computer System Design
The 2019 Federal Budget announced that from FY2020 three additional industries will be required to lodge taxable payments reports to the ATO, these are Security Providers and Investigation Services, Road Freight Transport, and Computer System Design and related Services. More detailed information on specific requirements will be available closer to the reporting date.
- A list of reportable IT Services is available on the ATO Website
- A list of reportable Security Providers' Services is available on the ATO Website
- A list of reportable Road Freight Transport services is available on the ATO Website
Information Required in the Report
The report must include the following information for each contractor:
- The contractor’s name, address and ABN;
- The total amount paid or credited to the contractor over the income year;
- Whether any GST has been paid.
The information included in the report is generally outlined on the invoices received from the contractors. It is important to check the way you keep your contractor details and payment information to ensure you have the correct data to complete the Taxable Payments Annual Report.
Note: The purchaser is not required to supply notice to the contractors of the taxable payments and GST reported to the ATO.
Training Resources & References
ATO - Taxable Payments Annual Report
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