(This replaces the note Taxation Administration Act)
Taxable payments annual report (TPAR) is a form by the Australian Taxation Office (ATO), asking for a listing of payments made to contractors by Australian business, to be completed annually. It can be downloaded from the ATO website or posted on request.
The ATO of the Australian Government uses information gathered from TPAR to identity those taxpayers with outstanding obligations. The due date for lodging this form is 28 August. The ATO website has online forms and guides to complete TPAR, listed under Taxable payments annual report.
Reporting payments to contractors
On 1 July 2012, the federal government introduced regulations which require businesses to report to the Australian Taxation Office (ATO) about payments they make to all contractors that provide building and construction services. The new Taxation Administration Amendment Regulations (the Regulations), were introduced because the ATO identified significant levels of noncompliance with taxation obligations by contractors in the building and construction industry.
Since 2012, other industries have been added to the list of TPAR. Under the Regulations, businesses or persons who pay a contractor for a supply must report those payments to the ATO. Payments made to employees are not included in TPAR (refer ATO website for definitions of employee and contractor). The purchaser/payer is defined as all businesses in the building and construction industry who purchase ‘building and construction services’. Building and construction services are defined as any of the activities performed on a building, structure, works or any surface. These are listed extensively on the ATO website under Examples of building and construction services.
TPAR Requirements
Annual reporting to the ATO is required by businesses for the payments that are made to contractors. Only businesses that have an Australian Business Number (ABN) are required to complete TPAR. Information gathered includes:
- the name of each contractor;
- each contractor’s ABN; and
- the gross amount of the payments (including GST) made for each contractor’s building and construction services in that year.
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