Reminder: TPAR Due 28 August
With the 28 August deadline approaching, it’s crucial to determine whether your business needs to lodge a Taxable Payments Annual Report (TPAR) for payments made to contractors or subcontractors during the financial year.
Here’s a quick reminder to help you understand your obligations:
Who needs to lodge a TPAR?
Your business may need to lodge a TPAR if you provide services in the following sectors:
- Building and construction
- Cleaning
- Courier and road freight
- Information technology (IT)
- Security, investigation or surveillance
What if your business offers multiple services?
If your business provides both (TPRS) services and other unrelated services, you must calculate the percentage of your income derived from TPRS services.
- If 10% or more of your business income comes from TPRS services, you must lodge a TPAR.
- If less than 10% of your business income comes from TPRS services, you may not need to lodge a TPAR.
To determine if you need to lodge, you can follow the following steps outlined by the Australian Taxation Office (ATO):
- Calculate payments received for relevant TPRS services during the financial year
- Determine your business income for the same period
- Divide the total payments received for relevant services by your business income and multiply by 100 to find the percentage
Why it matters
Failure to lodge a TPAR by the deadline can result in significant penalties. Last year, businesses incurred $18 million in penalties due to late submissions. For more information on your TPAR requirements read ‘Penalities Soon to Apply for TPAR’ and ‘Does your Business Pay Contractors?’
Navigating the TPAR requirements can be complex, but we’re here to help. We can assist with calculating your TPRS income, determining whether you need to lodge a TPAR and filing the report on your behalf to ensure compliance and avoid penalties. Reach out to your Simmons Livingstone advisor at 1800 618 800 or via email at admin@simmonslivingstone.com.au.
