With the due date of 28 August approaching, it’s time to check whether you need to lodge a Taxable payments annual report (TPAR).
You need to lodge a TPAR for payments made to contractors who provide the following services:
- building and construction
- cleaning
- courier and road freight
- information technology (IT)
- security, investigation or surveillance.
To make sure your TPAR is lodged on time and to avoid any penalties and unnecessary follow-up, here are some common errors to avoid:
- Ensure the business software you use to prepare the TPAR data file generates the data in a format that can be tested and lodged via ATO online services. The ATO can’t process spreadsheets, pdfs, or Word documents.
- Only use whole dollar amounts when reporting. Amount fields must not contain decimal points, commas, or other non-numeric characters.
- Make sure you’ve selected the correct lodgment year. It’s possible to lodge multiple TPARs, even if a previous year has been finalised. Selecting the incorrect year will lead to reminder correspondence and possible late lodgment penalties.
- If you changed your business structure during the financial year, make sure you lodge your TPAR with the correct ABN. For example, a supplier who previously operated as a sole trader and establishes a new company structure should report all TPAR payments this financial year under the company ABN, not the sole trader ABN.
If you don’t need to lodge this year, submit a TPAR Non-lodgment advice (NLA) to let the ATO know and avoid unnecessary follow-up.
The ATO website has more information to help you understand who needs to report and how to lodge.
Source: ATO Newsroom
