Taxable Payment Annual Report (TPAR)
The Taxable Payments Annual Report (TPAR) is used for reporting payments made to contractors. It was introduced in the 2011-2012 federal budget with the aim of improving tax compliance within certain industries.
If you’re in the building and construction industry, information technology services, courier services, or cleaning services, you are required to lodge a TPAR by 28th August each year. This report helps the ATO track payments made to contractors and ensure that those contractors are meeting their tax obligations.
It’s important to keep accurate records throughout the year to meet the TPAR requirements and avoid penalties.
The invoice you receive from each contractor should include key details necessary for reporting in the Taxable Payments Annual Report (TPAR).
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These details include:
- Contractor’s name
- Contractor’s address
- Australian Business Number (ABN)
- Total amount paid for their services, including GST
Even if your business is not registered for GST, you still need to determine whether you’re required to lodge a TPAR. This applies to businesses in industries like construction, cleaning, courier services, and IT, among others. Accurate record-keeping is essential for reporting these details to the ATO.