From 1 July 2019, businesses that provide road freight, information technology (IT), security, investigation, or surveillance services, will need to lodge a Taxable payments annual report (TPAR) each year to advise the ATO of payments made to contractors.
This is necessary even if these services are only part of the business’s activities.
The first TPAR will be due by 28 August 2020 for payments made from 1 July 2019 to 30 June 2020.
The information required to be compiled and reported is as follows:
ABN (if known)
name
address
total amounts paid during the financial year (including GST).
It is important to make sure appropriate systems are put in place to capture this information as payments are made. Most commercial accounting packages have the required functionality to capture, and then report this information.
Please contact us if you require further information or assistance.