New requirements for certain businesses to report to the ATO by 28 August

Editorial

25 June 2019

New requirements for certain businesses

to report to the ATO by 28 August

The Taxable payments annual report (TPAR) is due to the ATO by 28 August

2019. The ATO is encouraging businesses to report online.

The Taxable Payments Reporting System (TPRS) was first introduced in 2012 to strengthen detection of

those gaining an unfair advantage by not reporting or under-reporting their income, and to protect the

majority of people who are doing the right thing.

The TPRS now applies to businesses providing cleaning or courier services that have an Australian Business

Number (ABN) and make any payments to contractors for cleaning or courier services they provide on a

business’s behalf. These businesses will need to complete a Taxable payments annual report (TPAR).

This applies even if cleaning or courier services are only part of a business’s activities.

This new report for businesses providing cleaning or courier services applies from 1 July 2018, with the first

TPAR due by 28 August 2019.

Businesses must report the total payments they made to each contractor or subcontractor for cleaning or

courier services in the 2018-19 financial year.

Businesses providing mixed services, not just cleaning or courier services, may need to lodge a TPAR if

payments they received for cleaning or courier services make up 10 per cent or more of their total GST

turnover.

The ATO uses the information that businesses report to identify people who haven't lodged their tax

returns or included all their income.

ATO Deputy Commissioner, Deborah Jenkins, is encouraging businesses providing cleaning or courier

services to complete their report online.

“Reporting online is a quick and secure way for businesses to meet their obligations,” Ms Jenkins says.

“It has the advantage of ensuring businesses complete the report correctly, using inbuilt checks, and also

provides instant online confirmation once the report is lodged.”

Businesses can report online through the ATO’s Online Services or business software that offers TPAR. For

more information on how to lodge, visit www.ato.gov.au/TPAR.

Details that businesses need to report for each contractor are:

• Contractor’s name

• Address

• ABN, and

• Total amount the business paid them for the financial year.

“This information is usually on contractors’ invoices, and the same information businesses need when

claiming deductions,” Ms Jenkins says.

Businesses can choose to ask a tax professional who can lodge the TPAR online on their behalf, or request a

paper form from the ATO.

Ms Jenkins says keeping good records makes it easier for businesses to complete the report each year.

The ATO’s website has information to support businesses to understand and meet their obligations.

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“Our website www.ato.gov.au/TPAR helps businesses to work out if and how they need to lodge, how to

record payments and what details to report. Helpful resources include a simple worksheet, sample TPAR,

fact sheet, videos, webinars and information in other languages,” Ms Jenkins says.

Key points

• The Taxable Payments Reporting System (TPRS) now applies to cleaning and courier businesses that have

an Australian business number (ABN), and make any payments to contractors for cleaning or courier

services they provide on a business’s behalf.

• This applies even if cleaning or courier services are only part of a business’s activities.

• Cleaning and courier businesses must report those payments to the ATO by 28 August 2019 using the

Taxable payments annual report (TPAR).

• It’s quick and secure for cleaning and courier businesses to report online.

• The ATO uses TPARs to identify people who haven't lodged their tax returns or included all their income.

• Businesses should visit www.ato.gov.au/TPAR for information and resources.

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