Are you on top of your taxable payments annual reporting? Don’t worry; you still have time to organise your documents. With the deadline approaching on the 28th of August every year, the Australian Taxation Office (ATO) warns businesses against submitting documents late.

We’ve compiled this guide to get you up to speed on the ATO’s message to business owners and outline what you can do to prepare this report. Let’s get into it!

What Does ATO’s Statement on TPARs Say?

From the 22nd of March 2024, the ATO will begin issuing penalties to all businesses that didn’t lodge their taxable annual report (TPAR) in 2023 or beyond. Entities that have already received three warnings will also be subject to penalties. 

Last year, the ATO dealt over $18,000 in penalties to more than 11,000 businesses across Australia. This warning aims to reduce these stark figures.

Which Businesses Should Lodge TPARs? 

If you pay contractors to undertake work for your business, you need to submit a TPAR. Contracted services typically include cleaning, maintenance, construction, or IT work. Similarly, contractors that sub-contracted paid work are also liable.

TPARs aim to create equality in paying taxes, preventing paid contractors from under-reporting their income. 

If you haven’t paid a contractor since the 29th of August, after the TPAR deadline, you can submit a non-lodgement (NLA) indicating that you no longer need to submit this document in future. 

What Happens If You Get a Penalty? 

The ATO will send a written letter informing you of any imposed penalties and the reason for issuing them. You’ll have at least 14 days from the notice to pay fines. Failure to pay on time could leave you liable to greater charges with incurring interest.

As of March 2024, a single penalty unit equals the following:

  • July 2020–December 2022: $222
  • January 2023–June 2023: $275
  • July 2023 onwards: $313

You may receive higher fees if you’ve accrued multiple penalties from previous instances of non-compliance. The ATO may offer relief to small businesses that turnover less than $10 million annually.

Lodge Your TPAR On Time Every Year with Advisory One

As a certified accountants and advisory service provider, we’re equipped to lodge TPARs and NLAs via the online services for agents portal. Contact us today to get your documents in order and implement efficient preparations for the next deadlines.