TPAR Reporting requirements for Builders, Cleaners, Road Freight, IT or Security, Investigation or Surveillance Services

|by Linda Bergesen|Taxation and Compliance

If your business operates in one of the above industries, and you pay contractors (including subcontractors, consultants and independent contractors) to provide those services on your behalf - you will need to complete a Taxable payments annual report (TPAR) to report the total payments (including cash payments) you make to each contractor for providing those services on your behalf.

This reporting is aimed at identifying the contractors who have not met their tax obligations.

The report for the 2019 – 20 financial year is not due until 28 August 2020, but it’s important that you start keeping records of all contractor payments you made from 1 July 2019. Generally speaking, the supplier invoices would be sufficient documentation.

Mixed services

If you provide a range of services – otherwise known as ‘mixed services’– you may need to report if payments from these services make up 10% or more of your total GST turnover. Even if your business isn’t registered for GST you still need to check.

Examples of the types of mixed businesses that may need to lodge a TPAR include:

  • florists
  • building maintenance
  • franchisees and retailers
  • event management.

If you would like further clarification of any of the above, please get in touch with one of our trusted advisors via email or phone 07 5504 5700.

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