Taxable Payments Annual Report (TPAR)

All about Taxable Payments Annual Report (TPAR)

After knowing about the Income Tax Returns, it becomes very important to lodge the Taxable Payments Annual Report by August 28 of every year. This applies to business including the following ones:

  • Service providers.
  • Real estate consultants and properties
  • Facility Management Services and Contractors since July 1, 2018 (first report to be done by August 28, 2019).
  • Dispatch services for contractor payments since July 1, 2018 (first report to be done by August 28, 2019).
  • Transport freight services for contractor payments since July 1, 2019 (first report to be made by August 28, 2020).
  • Information technology (IT) solutions and service provider for contractor payments since July 1, 2019 (first report to be done by August 28, 2020).
  • Security and surveillance services for contractor payments since July 1, 2019 (first report due by August 28, 2020).
  • Miscellaneous services i.e. the business providing one or more services combined listed above.

Let us have a brief look at the category as mentioned below:

  • Real estate consultants and properties

If the business is primarily based on real estate, building, and construction, then the taxation lodgments need to be done for the:

  • Payments to contractors for building and construction services.
  • Australian Business Number registration and maintenance.

The payments done to the employees would not be included in the TPAR. The reporting is to be done by August 28 every year. The activities and services are to be considered while building and construction are ongoing.

  • Facility Management Services and Contractors

In case of the business being involved in providing facility management services even if it is a part of the services, the businesses must lodge TPARĀ  for every financial year. This includes:

  • Australian business number (ABN) registration and maintenance.
  • Payments for contractors for facility management services provided.

The payments done to the employees would not be included in the TPAR. If the businesses provide mixed services including cleaning, they need to lodge TPAR for the payments being received for cleaning services which can make up 10% or more of the total GST turnover.

Reassessment needs to be done when TPAR lodgment is done every year. The first TPAR for payments to contractors from July 1, 2018, to June 30, 2019, would get due by August 28, 2019.

  • Dispatch Services Providers

In case is about providing courier services, the TPAR must be lodged for every financial year including:

  • Australian Business Number (ABN) registration and maintenance.
  • Payments to contractors for provided courier services.

The payments done to the employees would not be included in the TPAR. If the businesses provide mixed services including courier services, they need to lodge TPAR for the payments being received for cleaning services which can make up 10% or more of the total GST turnover.

Reassessment needs to be done when TPAR lodgment is done every year. The first TPAR for payments to contractors from July 1, 2018, to June 30, 2019, would get due by August 28, 2019.

  • Transport Freight Services

In case is about providing transport freight services, the TPAR must be lodged for every financial year including:

  • Australian Business Number (ABN) registration and maintenance.
  • Payments to contractors for provided transport freight services.

The payments done to the employees would not be included in the TPAR. If the businesses provide mixed services including transport freight services, they need to lodge TPAR for the payments being received for transport freight services which can make up 10% or more of the total GST turnover.

Reassessment needs to be done when TPAR lodgment is done every year. The first TPAR for payments to contractors from July 1, 2019, to June 30, 2020, would get due by August 28, 2020.

  • Information Technology Solutions and Service Providers

In case is about providing Information Technology (IT) Solutions and Services, the TPAR must be lodged for every financial year including:

  • Australian Business Number (ABN) registration and maintenance.
  • Payments to contractors for provided Information Technology (IT) Solutions and Services.

The payments done to the employees would not be included in the TPAR. If the businesses provide mixed services including Information Technology (IT) Solutions and Services, they need to lodge TPAR for the payments being received for Information Technology (IT) Solutions and Services can make up 10% or more of the total GST turnover.

Reassessment needs to be done when TPAR lodgment is done every year. The first TPAR for payments to contractors from July 1, 2019, to June 30, 2020, would get due by August 28, 2020.

  • Security and Surveillance Services

In case is about providing Security Surveillance Services, the TPAR must be lodged for every financial year including:

  • Australian Business Number (ABN) registration and maintenance.
  • Payments to contractors for provided Security Surveillance Services.

The payments done to the employees would not be included in the TPAR. If the businesses provide mixed services including Security Surveillance Services, they need to lodge TPAR for the payments being received for Security Surveillance Services can make up 10% or more of the total GST turnover.

Reassessment needs to be done when TPAR lodgment is done every year. The first TPAR for payments to contractors from July 1, 2019, to June 30, 2020, would get due by August 28, 2020.

  • Miscellaneous Services

In case the businesses provide some other nature of work apart from the ones listed above, the TPAR needs to be lodged. Every financial year, the percentages of payments need to be calculated as per the nature of services. In case the total payments are 10% or more than the GST turnover, the TPAR must be lodged.

Even if the GST is not registered, the TPAR lodgment still needs to be checked and verified. The businesses need to have a GST turnover regardless of whether the GST is registered or not.

The examples that the miscellaneous types of business include:

  • Florists.
  • Building maintenance.
  • Franchisees and retailers.
  • Event management.

These pieces of information are important to know when the nature of businesses differs along with the percentages of tax lodgment.

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