Run a Business in the Construction Industry?
If you run a business in the construction industry and pay contractors for building and
construction services, then you must lodge a Taxable Payments Annual Report (TPAR) with
the ATO.
You need to report the total payments you make to each contractor for building and
construction services each year. The ATO then use this information to detect contractors
who have not:
- lodged tax returns
- included all their income on tax returns that have been lodged.
Who needs to report?
You need to report if all of the following apply – you:
- are a business that is in the building and construction industry
- make payments to contractors for building and construction services
The definition of building and construction services is very diverse and covers a wide range
of activities. It includes bricklaying, plumbing, fencing and it also includes architectural work
(including drafting and design), decorating (including painting), engineering and landscaping
construction.
However, payments not required to be reported include payments for materials only,
payments that haven’t actually been made before 30 June and payments for private or
domestic projects (paid by a home owner).
What do you need to report?
You need to report the following information about each contractor:
- their Australian business number (ABN), if known
- their name
- their address
- the gross amount you paid them for the financial year (this is the total amount paid including GST)
- the total GST included in the gross amount you paid.
You should be able to find this information in the invoices you received from your
contractors. If you use an accounting program in your business, this software should have
the ability to run these reports for you.
You are required to lodge your TPAR before 28 August each year.
If you need assistance with lodging or preparing your TPAR report, please contact Kate at
our office for assistance.
Author: Kim Jay
