As we head into the new financial year, an important 2023/24 end-of-year report for many of you, especially those in the building and construction industry, is the Taxable Payments Annual Report (TPAR).
TPAR reporting came into effect in 1998. The ATO introduced it to crack down on the “cash economy” in specific industries. By tracking payments made to subcontractors, the ATO can ensure everyone plays by the rules and pays their fair share of tax.
Do you need to lodge a TPAR?
Not every business that uses subcontractors needs to lodge a TPAR. Here’s the simple breakdown:
- Generally: You need to lodge a TPAR if 10% or more of your total income comes from relevant services (like building and construction, cleaning, or IT).
- Building and construction specifically: The threshold is even lower for those in the building and construction industry. To trigger the TPAR requirement, you only need to make 50% or more of your income from subcontractor services.
What information do you require?
Before you lodge your TPAR, you’ll need to gather some key details about your subcontractors, such as:
- Their name and address
- Their Australian Business Number (ABN)
- The total amount you paid them (including GST)
Lodging your TPAR: two easy options.
There are two main ways to lodge your TPAR with the ATO:
- Do it yourself: The ATO online portal lets you lodge your TPAR directly. It’s a user-friendly system, and the ATO website has plenty of helpful guides to walk you through the process https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/reports-and-returns/taxable-payments-annual-report/lodge-your-tpar.
- Let your bookkeeper handle it: If you prefer, you can leave the TPAR lodgement to Being Accountable. Just make sure you provide us with all the necessary information about your subcontractors well in advance of the deadline.
Don’t miss the TPAR deadline!
This is the crucial part. The deadline to lodge your TPAR for the 2023-24 financial year is 28 August 2024. Missing this deadline can result in penalties, so make sure you lodge it on time.
Keeping things simple.
Here are some final tips for a smooth TPAR experience:
- Keep good records: Throughout the year, maintain clear and accurate records of all payments made to your subcontractors. This will save you a scramble come lodgement time.
- Communicate with your bookkeeper: If you’re using a bookkeeper, keep them informed about any new subcontractors you engage and ensure they have the latest information.
- Don’t panic! If you’re unsure about anything related to TPAR, don’t hesitate to contact the professional team at Being Accountable Bookkeeping or the ATO for clarification.
By following these tips and keeping the deadline in mind, you can ensure a stress-free TPAR lodgement this year.
Need help?
If you’re unsure of what you need to do or the information required to lodge your TPAR, call Jo at Being Accountable Bookkeeping on 8294 4222 or send her an email.
