The ATO has extended the group of businesses which must prepare and lodge the ‘Taxable Payments Annual Report’ to include businesses which offer cleaning and courier services.
Traditionally, this report has been prepared by businesses in the building and construction industry, as well as the public service. The report tells the Government about payments your business makes to contractors.
Your business will need to prepare a TPAR if you provide cleaning or courier services which account for 10% or more of your GST Turnover.
The first TPAR for cleaning and courier businesses covers the period 1 July 2018 to 30 June 2019 and is due by 28 August 2019.
You need to record the following information:
The information needed should be provided on invoices from the contractors you work with.
Payments you do not need to record include:
Payments for materials only
Payments for incidental labour
Unpaid invoices at 30 June
Payments within consolidated groups
Payments for private and domestic services
Even though the due date may seem like a long way off, keeping records of contractor details, while you are in contact with them can make the process of preparing the TPAR a lot easier. If you leave it to the last minute, it may be difficult to track down the relevant information needed.
The TPAR allows the ATO to ensure contractors are being compliant with their taxation obligations.
Contact us at Dolman Bateman or Buildersbooks if you are looking for an experienced accountant or Bookkeeper.
This information is not to be relied upon without speaking to your accountant, tax agent or financial adviser depending on the advice.