Does your Business Pay Contractors?
If your business makes payments to contractors for specific services, you may need to report these payments by lodging a taxable payments annual report (TPAR) by 28 August.
Why must you lodge a TPAR?
The Australian Taxation Office (ATO) developed TPAR reporting to prevent contractors from not reporting or under-reporting their income. Failing to lodge could result in penalties including enforcements for overdue TPARs, find out more on why compliance matters and read ‘Penalities Soon to Apply for TPAR’.
Which businesses must lodge a TPAR?
Business sectors that may need to lodge a TPAR for payments to contractors include:
- Building and construction
- Cleaning
- Courier and road freight
- Information technology
- Security, investigation and surveillance
How to lodge a TPAR
To prepare your TPAR, you’ll need the name, address and Australian Business Number (ABN) for all contractors hired and the amount you paid them, including GST and cash payments. The easiest way to lodge your return is through a Standard Business Reporting (SBR) system.
At Simmons Livingstone, we understand that it is not always easy to navigate the tax system. We can assist you through the process, lodging the TPAR on your behalf and providing guidance on the best approach.
Last year, businesses faced $18 million in penalties due to late TPAR submissions. To avoid similar penalties, it’s essential to understand your TPAR requirements and take proactive steps to ensure compliance.
By staying informed and seeking professional advice from your Simmons Livingstone advisor, you can navigate your TPAR requirements effectively. Speak with your Simmons Livingstone advisor on 1800 618 800 or via email at admin@simmonslivingstone.com.au
