The taxable payments annual report (TPAR) reports information to the ATO about payments made to contractors for services within certain industries.
This year, taxable payments reporting was expanded to include three new industries: road freight services, information technology services and security, investigation or surveillance services.
What is included in the report?
- Contractor ABN
- Contractor name
- Contractor address
- Total amount paid for the 2020 financial year, including any GST component, for invoices relating to services or mixed supply of services and materials. Invoices for materials only are not included in the report.
Road Freight Services
Any business that pays contractors engaged to provide road freight related services must report payments to these contractors on the TPAR.
Road freight services includes removals, haulage, forwarding, taxi trucks and truck hire with a driver.
Courier services were included in TPAR reporting in 2019. Many businesses in this industry offer both road freight and courier services. The reporting for this industry has now been expanded to include road freight so that these services are now counted as one category for taxable payments reporting.
Information Technology (IT) Services
IT services includes software development, designing computer systems, computer facilities management, hardware consulting, software installation and technical support.
Security, Investigation or Surveillance Services
These services include patrolling, protection, guarding, alarm monitoring, armoured car services, detective agencies, crowd control and screening equipment.
First Report This Year
This is the first year that the new industries of road freight, IT and security industries are required to submit a TPAR.
The report is due by 28 August 2020.
Visit the ATO taxable payments annual report webpage for full details of what services are included for the new industries.
Lodge the TPAR with GovReports
GovReports has three options for submitting the TPAR.
- Manually enter contractor details in GovReports online form. This is a good option if the business has only a few contractors to report or the business cannot produce a CSV or ATO TPAR file to import.
- Import a CSV file into GovReports. Use this option if the business has many contractors to report but does not use software that produces the ATO format of TPAR report.
- Import the ATO TPAR.Cnn file format. This file is produced from compatible business or accounting software and is the best option when possible.
Visit our previous articles for step-by-step instructions on how to create, upload and lodge the TPAR file.
TPAR Report for Tax Practitioners
Government entities that are required to report contractors must do so using the ATO online business portal file transfer function. GovReports is unable to lodge the TPAR for government entities.
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Check our videos Prepare and Lodge TPAR and also Lodging an Amended TPAR.
