New ATO Requirements

New requirements for certain businesses
to report to the ATO by 28 August


The
Taxable payments annual report (TPAR) is due to the ATO by 28 August 2019. The ATO is encouraging businesses to report online.

 

The Taxable Payments Reporting System (TPRS) was first introduced in 2012 to strengthen detection of those gaining an unfair advantage by not reporting or under-reporting their income, and to protect the majority of people who are doing the right thing.

The TPRS now applies to businesses providing cleaning or courier services that have an Australian Business Number (ABN) and make any payments to contractors for cleaning or courier services they provide on a business’s behalf. These businesses will need to complete a Taxable payments annual report (TPAR).

This applies even if cleaning or courier services are only part of a business’s activities.

This new report for businesses providing cleaning or courier services applies from 1 July 2018, with the first TPAR due by 28 August 2019.

Businesses must report the total payments they made to each contractor or subcontractor for cleaning or courier services in the 2018-19 financial year.

Businesses providing mixed services, not just cleaning or courier services, may need to lodge a TPAR if payments they received for cleaning or courier services make up 10 per cent or more of their total GST turnover.

The ATO uses the information that businesses report to identify people who haven’t lodged their tax returns or included all their income.

ATO Deputy Commissioner, Deborah Jenkins, is encouraging businesses providing cleaning or courier services to complete their report online.

“Reporting online is a quick and secure way for businesses to meet their obligations,” Ms Jenkins says.

“It has the advantage of ensuring businesses complete the report correctly, using inbuilt checks, and also provides instant online confirmation once the report is lodged.”

Businesses can report online through the ATO’s Online Services or business software that offers TPAR. For more information on how to lodge, visit www.ato.gov.au/TPAR.

Details that businesses need to report for each contractor are:

  • Contractor’s name
  • Address
  • ABN, and
  • Total amount the business paid them for the financial year.

“This information is usually on contractors’ invoices, and the same information businesses need when claiming deductions,” Ms Jenkins says.

Businesses can choose to ask a tax professional who can lodge the TPAR online on their behalf, or request a paper form from the ATO.

From 1 July 2019, the TPRS will also apply to businesses providing road freight, IT, security, surveillance and investigation services. These businesses need to lodge their TPAR by 28 August 2020.

Ms Jenkins says keeping good records makes it easier for businesses to complete the report each year.

The ATO’s website has information to support businesses to understand and meet their obligations.

“Our website www.ato.gov.au/TPAR helps businesses to work out if and how they need to lodge, how to record payments and what details to report. Helpful resources include a simple worksheet, sample TPAR, fact sheet, videos, webinars and information in other languages,” Ms Jenkins says.

 Key points

  • The Taxable Payments Reporting System (TPRS) now applies to cleaning and courier businesses that have an Australian business number (ABN), and make any payments to contractors for cleaning or courier services they provide on a business’s behalf.
  • Business required to report under the TPRS provide the ATO with a Taxable payments annual report (TPAR) that tells us about payments they have made that year to contractors providing courier or cleaning services on their behalf.
  • This applies even if cleaning or courier services are only part of the business’s activities.
  • Cleaning and courier businesses must report those payments to the ATO by 28 August 2019 using the Taxable payments annual report (TPAR).
  • From 1 July 2018, these businesses new to the TPRS must report the total payments made to each contractor or subcontractor for cleaning or courier services during 2018-19.
  • It’s quick and secure for cleaning or courier businesses to report online.
  • From 1 July 2019, the TPRS will apply to business providing road freight, IT, security, surveillance and investigation services that have an Australian business number (ABN), and make any payments to contractors for road freight, IT, security, surveillance and investigation services they provide on a business’s behalf.
  • If a business provides a range of services, including road freight, IT, security, surveillance or investigation services, the business may need to lodge a TPAR if the payments they received for these services make up 10 per cent or more of the business’s total GST turnover.
  • These businesses will need to lodge a TPAR by 28 August 2020.
  • The ATO uses TPARs to identify people who haven’t lodged their tax returns or included all their income.
  • Businesses should visit www.ato.gov.au/TPAR for information and resources.