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  • TPAR extends to new industries

    From 1 July 2019, the taxable payment reporting system (TPRS) applies to businesses providing the following services and who pay contractors to provide these services on their behalf:

    • road freight services
    • information technology (IT) services
    • security, surveillance and investigation services.

    If your business provides any of these services even if it’s only part of the services you provide, you will need to check whether you need to lodge a Taxable payments annual report (TPAR).

    Contractors can include subcontractors, consultants and independent contractors.

    Your first TPAR will be due on 28 August 2020 for payments made to contractors in the 2019–20 financial year for providing those services on your behalf. This means you need to start keeping records of the contractor payments you make from 1 July 2019.

    Businesses that provide a range of services – known as ‘mixed services’– may also need to report if payments they receive from road freight, IT or security, surveillance and investigation services make up 10% or more of their total GST turnover.

    How we use TPAR data

    We use data provided in the TPAR to identify contractors who may not be doing the right thing with their tax, for example:

    • not reporting income
    • failing to lodge tax returns or activity statements
    • not registering for GST
    • using a false Australian business number (ABN).

    The TPRS prevented $2.7 billion from being lost to the black economy in the building and construction industry in 2015–16. By bringing this black economy money back into the tax system, we will return it to the public purse for all Australians to benefit from.

    See also:

    Last modified: 04 Sep 2019QC 60059