New industries included in the taxable payments reporting system

New industries included in the taxable payments reporting system

If you operate a business in the cleaning, courier, road freight, IT, or security/investigation industries, there are now additional reporting obligations to the ATO. This is in the form of a taxable payments annual report (TPAR) which deals specifically with contractors that you have paid. 

What is the Taxable Payment Reporting System (TPRS)?

The taxable payment reporting system (TPRS) is an ATO initiative which aims to increase the tax compliance of certain industries that are vulnerable to the ‘black economy’. 

As a part of the TPRS, businesses in certain industries are required to report payments they make to contractors for services. These payments are reported to the ATO annually in the form of a TPAR. With this information, ATO can check and ensure that the correct income is declared by those contractors on their tax returns.

New industries included in the Taxable Payments Reporting System

The TPRS was first introduced to the construction and building industry in 2012, and has now been extended to include the following industries: 

  • Cleaning
  • Courier
  • Road freight
  • Information technology (IT)
  • Security, investigation and surveillance
INDUSTRIESREPORTING START DATEFIRST REPORTING PERIOD
Building & Construction1 July 20121 July 2012 – 30 June 2013
Cleaning Services1 July 20181 July 2018 – 30 June 2019
Courier Services1 July 20181 July 2018 – 30 June 2019
Road Freight Services1 July 20191 July 2019 – 30 June 2020
Information Technology (IT) Services1 July 20191 July 2019 – 30 June 2020
Security, Investigation or Surveillance Services1 July 20191 July 2019 – 30 June 2020

Taxable Payments Annual Report (TPAR) Due dates

For businesses in the cleaning and courier industries, the very first taxable payments annual report (TPAR) is due by 28 August 2019, and covers contractor payments from 1 July 2018 until 30 June 2019.

For businesses in the road freight, IT, and security investigation and surveillance industries, the very first TPAR is due by 28 August 2020, and covers contractor payments from 1 July 2019 until 30 June 2020.

For the latest reporting period of 1 July 2018 – 30 June 2019, the due dates are as follows:

INDUSTRIESREPORTING START DATEFIRST REPORTING PERIOD
Building & Construction1 July 2018 – 30 June 201928 August 2019
Cleaning Services1 July 2018 – 30 June 201928 August 2019
Courier Services1 July 2018 – 30 June 201928 August 2019
Road Freight ServicesReporting begins 1 July 201928 August 2020
Information Technology (IT) ServicesReporting begins 1 July 201928 August 2020
Security, Investigation or Surveillance ServicesReporting begins 1 July 201928 August 2020

How the taxable payments reporting system affects your business

If your business operates in these industries, you will need to prepare the annual taxable annual payments report (TPAR) to report your contractor payments. This is a good opportunity to revisit the current accounting software or systems that you have in place, to make sure that the relevant information is captured.

When lodging a TPAR, the following details are required:

  • Contractor’s name or business name
  • Contractor’s ABN
  • Contractor’s address
  • The gross amount paid for services in the last year, including GST and tax withheld

Are there exceptions to the taxable payments reporting system?

There are some instances where businesses won’t be required to lodge a TPAR. This depends on how much income a business receives from the industries targeted by the TPRS.

Businesses that do not pay contractors will not have to complete a TPAR. But, a ‘Not Required to Lodge’ form will still need to be submitted to the ATO.

Need Help with the TPRS?

For more information on the TPRS or for help lodging this report, speak to our friendly team.

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