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Taxable Payment Annual Report (TPAR)

Each year many businesses receive a notification from the ATO to submit their TPAR – they turn to Professional Bookkeepers or Accountants asking – WHAT IS THAT?
Very simple and straightforward – Taxable Payment Annual Report is a report the ATO report how much they paid their subcontractors, consultants, and independent contractors. The subcontractors can be a sole trader, trust, or company – it won’t matter to the ATO, they all fall under the reportable income tax report.

Does everyone need to lodge the TPAR?
It depends. If you received a service from builders or other construction services, cleaning services, courier services, road freight services, IT services and security, investigation & surveillance services, then the answer is YES, you need to report those amounts to the ATO.

Other payments, such as materials, unpaid invoices after the 30th of June, PAYG withholding, payments to foreign residents for work undertaken in Australia, contractors without ABN, or payments for domestic and private projects do not need to be reported.

When is the TPAR due?
Taxable Payment Annual Report is due by the 28th of August each year.

How Do You Lodge It
You can ask your BAS agent or accountant to lodge it for you, or if your accounting software provides it, you can lodge it via the software. Before you do so, make sure the report is accurate and true.

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