If your business makes payments to contractors or subcontractors you may need to lodge a Taxable payments annual report (TPAR) by 28 August each year.
If you provide any of the following services you need to know about TPAR:
- building and construction services
- cleaning services
- courier services or road freight services
- information technology (IT) services
- security, investigation or surveillance services
- government entities
The TPAR details payments made to contractors for providing services. Some government entities also need to report the grants they have paid.
Contractors can include subcontractors, consultants and independent contractors. They can be operating as sole traders (individuals), companies, partnerships or trusts.
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
- total amounts for the financial year of the
- gross amount paid (including GST plus any tax withheld)
- total GST you paid them
- total tax withheld where ABN was not quoted.
Additionally, if you are a government entity, you will also need to report:
- whether a Statement by a supplier was provided
- details of any grants paid to people or organisations that have an ABN, including the
- date the grant was paid
- name of the grant or grant program
If you’d like more information regarding TPAR please call our office and ask for Kate.