Understanding TPAR – The Taxable Payments Annual Report

by | Aug 7, 2024 | Uncategorized | 0 comments

While the name definitely makes it sound a bit more complicated than it actually is, the TPAR is basically just a report that the ATO uses so they can spot anyone who’s not fulfilled their tax obligations – the crux of it is that you’re reporting any payments you’ve had to make to service contractors, including:

  • Companies
  • Partnerships
  • Consultants
  • Subcontractors
  • Trusts
  • Sole traders


Do I Need to Lodge a TPAR?

Prior to July 2019, the list of companies that needed to lodge one of these reports was actually relatively sort – since then, though, the ATO requires you to send one if your business falls into one of these categories:

  • Cleaning services
  • IT providers
  • Construction and building services
  • Couriers
  • Government entities
  • Road freight services
  • Any mixed services that provide at least one of the services just mentioned – building maintenance firms, for instance.


What Information Do I Have to Include?

So, what do you actually need to include on the TPAR?

  • Whether or not your supplies provided you with a statement as well as details of any grants that have been paid to organisations or people with an ABN (you only need to include this if you’re a government entity)
  • The contractor’s ABN, address, and name
  • The gross figure that you paid for the financial year – this included any tax withheld or GST


What Don’t I Need to Include?

You don’t, however, need to mention any details in your TPAR about:

  • Payments for domestic and private services
  • Any payments made to companies within the consolidated groups your business might be a part of
  • Any unpaid invoices towards the end of the financial year
  • Payments for incidental labour, such as labour costs if a supplier of yours provides materials and explains how to install them, for instance
  • Payments that you’ve made just for materials

Keep in mind that if you own one of the businesses we mentioned earlier, you need to lodge your TPAR by the 28th of August each year.


Prepare your TPAR With Advisory One

If you’re unsure how to properly navigate the process of lodging your TPAR correctly – which can result in penalties if done incorrectly or not at all – don’t hesitate to get in touch with our team of expert accountants here at Advisory One! Call today at 02 6324 5888 to learn more about our services.