The Tax Office will begin applying penalties from the middle of next month where businesses have failed to lodge a Taxable Payments Annual Report (TPAR) from 2023.
The ATO has warned businesses that pay contractors to provide certain services to lodge their taxable payments annual report (TPAR) for 2023.
TPAR is an industry specific report that certain organisations must lodge with the Australian Taxation Office (ATO), in order to provide details of payments made by certain contractors, subcontractors and consultants.
Broadly speaking, TPAR requirements affect some government entities, as well as those engaging contractors, subcontractors or consultants that receive 10% or more of their gross business income from the following activities:
- Building and construction services;
- Cleaning services;
- Courier services;
- Road Freight services;
- Information Technology (IT) services; and
- Security, investigation and surveillance services.
“From 22 March, we’ll apply penalties to businesses that haven’t lodged their TPAR from 2023 or previous years or have received three reminder letters about their overdue TPAR,” the ATO stated in an update issued recently. In 2022 more than $18m in penalties were issued to more than 11,000 businesses who failed to comply.
The TPAR is used to report payments made to contractors or subcontractors during the financial year and is due on 28 August each year.
The ATO said the TPAR data helps the ATO identify contractors who don’t declare all their income so we can level the playing field for businesses who do the right thing.
If you don’t need to lodge a TPAR, you can submit a non-lodgement (NLA) form. If you no longer pay contractors, you can also use this form to indicate that you won’t need to lodge a TPAR in the future.
The Tax Office said tax professionals should check if their business clients need to lodge TPAR for payments made to contractors providing services including building and construction, cleaning, courier and road freight, information technology (IT), security and investigation or surveillance.
The ATO said accountants can help business clients prepare for their TPAR by encouraging them to keep records of all their contractor payments.
It’s important to lodge on time, as the ATO uses the reported information to pre-fill information for sole trader/contractors to help with the preparation of their income tax returns.
Source: ATO
How can we help?
If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au or arrange a time for a meeting so we can discuss your requirements in more detail.
General Advice Warning
The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.
Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.
Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.
Recent Comments