Taxable Payments Annual Report (TPAR)
REMINDER – Taxable Payments Annual Report (TPAR)
– ATO Lodgement Due 28 August 2019
Are you liable to report on payments made to contractors?
Accommodation businesses providing ‘cleaning services’ are now required to report!
For the first time, Accommodation businesses are required to report on contractor payments. The ATO has extended the list of business types required to provide information on payments made to contractors to include businesses providing ‘cleaning services’.
Taxable Payment Annual Report lodgements provide information to the ATO regarding payments made to contractors including their ABN, name, address and payments made to them during the financial year. The ATO are using the TPAR information to identify contractors who are not meeting their tax obligations.
If the portion of your income relating to cleaning services is 10% or more you must lodge a TPAR annually and the first lodgement is due by 28 August 2019 reporting on payments made to contractors for the year ended 30 June 2019.
Is 10% or more of your turnover for cleaning services?
Cleaning services include, but are not limited to, any of the following activities undertaken on a building, residence etc:
- interior cleaning
- exterior cleaning
- carpet cleaning
- gutter cleaning
- road sweeping and street cleaning
- swimming pool cleaning
- park and park facilities cleaning.
N.B. Management Rights businesses will most often be answering ‘yes’ to this question
Your Taxable payments annual report (TPAR) is due by 28 August each year and penalties may apply for not lodging your annual report by the due date.
You can lodge your TPAR via a paper form or online via your ATO Business Portal or bookkeeping software. We suggest taking the steps to get all applicable information set up in your bookkeeping file (Xero, MYOB, Quickbooks) to make the annual reporting as pain-free as possible in future.
Lodging a TPAR Nil Report
Even if your cleaning income is less than 10% of your turnover and/or you haven’t paid any contractors during the year, we would suggest you lodge a nil TPAR to avoid investigation from the ATO.