Taxable Payments Annual Reports are due to be lodged with the ATO by the 28th of August and will be required to be lodged by even more businesses this year.
Those in the Building and Construction Industry have been submitting these reports for a number of years. More recently, this industry was joined by those providing both cleaning and courier services.
This year, businesses that pay contractors to provide the following services will also be required to lodge a TPAR Report:
- Road Freight
- Information Technology
To add to this, many businesses have changed the way that they are getting their products to their customers as a result of the restrictions placed on them by the current Covid-19 crisis.
While many café’s, restaurants and retailers would not normally by required to lodge a TPAR, those that are now paying contractors to deliver their products may be required to lodge.
If the total payments received from these deliveries are 10% or more of the total annual business income, a TPAR report will need to be lodged.
For those businesses that are considering paying contractors to deliver their products going forward, it might be a timely reminder that your record keeping should include the relevant details.
- Business or Individual Name
- The total amounts for the financial year:
- gross amount paid (including GST plus any tax withheld)
- total GST you paid them
- total tax withheld where ABN was not quoted.
If you are not sure if you need to lodge, please do not hesitate to contact us for assistance.
Contributed by Kerryn Groves