If your business pays contractors to provide certain services, you may need to lodge a Taxable Payments Annual Report (TPAR) by 28 August each year.

From 22 March, the ATO will apply penalties to businesses that:

• have not lodged their TPAR from 2023 or previous years;
• have received three reminder letters about their overdue TPAR.

Last year, the ATO issued penalties of approximately $18 million to more than 11,000 businesses.

If you do not need to lodge a TPAR, you can submit a non-lodgment advice (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.

Contractor details

For each contractor you pay, you must include the following details in your TPAR:

• the ABN, if known (if a contractor’s ABN changed during the year, include each ABN for that contractor);
• the contractor’s name (business name or individual’s name) and address;
• the total amounts for the financial year of:
• the gross amount paid, including GST, and any tax withheld;
• the total GST you paid them; and
• the total tax withheld where an ABN was not quoted.

When you receive an invoice:

• check that the ABN on the invoice matches the ABN on your record for that contractor;
• ensure you create a new contractor record, if necessary.

You can check that your contractor’s details (including ABN, name and GST registration) are correct by using ABN Lookup or the ATO app.

Lodging the TPAR

Use business software if:

• it is SBR-enabled software;
• your business can create a TPAR data file to the required Taxable payments annual reporting specifications. Lodge through Online services for business using the file transfer function.

If you do not have business software, use Online services for business. You need an ABN and a secure credential myGovID and Relationship Authorisation Manager (RAM).

Need assistance? We can work with you to successfully help you with your TPAR lodgment obligations.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements.

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.