TPAR – do you need to report?

TPAR – do you need to report?

From 1 July 2019, the taxable payments reporting system (TPRS) expanded to include payments a business makes to contractors who provide any of the following relevant services on their behalf:

Road freight services

Security, investigation or surveillance services.

Information technology (IT) services.

If your business provides any of these relevant services, even if it’s only part of the services they provide, you should consider your reporting obligations. The first Taxable payments annual report (TPAR) summarising payments made for these services is due by 28 August 2020 for the 2019–20 financial year.

TPRS reporting exemptions

You may be exempt from the TPRS reporting obligation for the relevant service if the payments received for:

Courier services and road freight services (combined) are less than 10% of the entity’s GST turnover.

Cleaning services are less than 10% of the entity’s GST turnover.

Security, investigation or surveillance services (combined) are less than 10% of the entity’s GST turnover.

IT services are less than 10% of the entity’s GST turnover.

If you are not required to lodge you should complete a Taxable payments annual report – not required to lodge form. The ATO will then update our records to prevent unnecessary follow up.