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Taxable Payments Annual Report (TPAR) Time

June 10, 2014 0 Comments

Building and Construction companies that pay contractors for construction work and services need to prepare to report those payments on an annual basis to the Australian Tax Office. If you pay contractors for construction work then your TPAR is due 21 July 2014. This does not just affect the Building and Construction Industry but it is one of the main industries targeted by the regulations.

This affects all businesses in the Civil, Commercial and Residential Construction Industries and all Building Contractors who work for them. There are no exceptions.

You need to report the contractor’s ABN, name and address, the total amount paid for the year and the total GST included in that amount. This information will generally be contained in the invoices you receive from your contractors.   The ATO will be closely reviewing the contractor payments and the onus lies on the construction companies to comply by way of keeping detailed contractor records. So be sure you comply accurately.

For example, the ATO is now using a data matching tool to identify contractors who have not lodged tax returns or not included all of their income on tax returns that have been lodged. So essentially the ATO is now relying on you to keep accurate and up to date records of all of your contractor transactions.

The simplest solution is to use an accounting software (such as MYOB AccountRight) to complete your TPAR (taxable payments annual report). A good accounting system that has a solution for TPAR built in will ensure that you will be compliant and accurate, while at the same time not become to much of an admin burden to produce the report.

Part of your compliance requirement is to ensure that your contractor’s ABN is current and accurate. Make part of your procedure to check out their ABN’s when contracting them. This really is no different to checking that their license, insurance and OHS accreditations are all up-to-date.

Are my contractors’ ABNs current and accurate?

Most building contractors will have an Australian Business Number. Each time you employ a contractor, ensure you check their ABN is current and accurate.   Ensuring you are compliant can be both complex and time consuming. If you need help when you’re completing your TPAR, consider some of the resources available from the ATO. The ATO runs monthly webinars about understanding taxable payment reporting which could help simplify your EOFY paperwork. Or check with your bookkeeper or accountant.

The ATO has set up an online process for reporting.

Visit the ATO Taxable Payments Reporting webpage for more information about:

  • what needs to be reported;
  • when your report is due;
  • how to register for an AUSkey;
  • how to lodge your annual report; and
  • how to register for an online webinar.

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