With the annual 28 August deadline now well overdue, the ATO has confirmed that more than 60,000 businesses have yet to lodge their TPAR, with failure-to-lodge penalties looming.

ATO assistant commissioner Peter Holt has urged businesses to lodge immediately, noting that the taxable payments reporting system (TPRS) aims to create a level playing field for contractors.

What is TPAR?

TPAR – Taxable Payments Annual Reporting – is the reporting of all payments made to contractors for businesses in the following industries;

  • Building and construction
  • Cleaning
  • Courier Services
  • Road Freight
  • Information Technology, and
  • Security, investigation or surveillance services

Businesses that provide mixed services — a mixture of any the above services — and receive payments for these services that exceed 10 per cent or more of their total GST turnover will also need to lodge a taxable payments annual report (TPAR) by 28 August each year.

How does COVID change this?

Many more businesses might be captured under the TPRS for the first time ever after COVID-19 forced businesses to pivot to a delivery service model.

“Many restaurants, cafés, grocery stores, pharmacies and retailers have started paying contractors to deliver their goods to their customers,” ATO assistance commissioner Mr Holt said.

“These businesses may not have previously needed to lodge a TPAR. However, if the total payments received for these deliveries or courier services are 10 per cent or more of the total annual business income, you’ll need to lodge.”

What do I have to do?

If you think the above affects you or you have not lodged and are in these industries please contact us and we can assist you.