Taxable Payments Annual Report due soon

The taxable payments annual report (TPAR) reports information to the ATO about payments made to contractors for certain services.

TPAR for the building and construction industry has been in place for some years. This year, taxable payments reporting was expanded to include services provided by contractors within cleaning and courier businesses.

If you are a business that provides courier or cleaning services, you now need to report payments you make to contractors if:

• the payments are for courier or cleaning services
• you have an Australian business number (ABN).

Contractors includes subcontractors, consultants and any other independent contractor who is not an employee.

What is included in the report?

• Contractor ABN
• Contractor name
• Contractor address
• Total amount paid for the 2019 financial year, including any GST component, for invoices relating to services or mixed supply of services and materials. Invoices for materials only, are not included in the report.

Cleaning services - Any cleaning business that pays contractors to provide cleaning related services must report payments to these contractors on the TPAR. Cleaning services includes interior, exterior, carpet, chimney, gutter, street, swimming pool and park facility cleaning for buildings, residences, vehicles, machinery, equipment or events.

Courier services - A courier business that pays contractors for door-to-door deliveries made by bicycle, foot, car, motorcycle, truck, drone or any other vehicle needs to report contractor payments.

File your first report this year

This is the first year that cleaning and courier businesses are required to submit a TPAR. Most accounting software programs include a means of preparing the TPAR from within the software, once all the required details about contractors paid throughout the year have been entered.

The first report for cleaning and courier businesses is due by 28 August 2019.

Unsure if you should report TPAR?

If your business offers cleaning or courier services either as the main type of income or as part of your business mix, talk to us about the contractors you pay. We can assist in setting up your software for correct reporting of contractors for TPAR.