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  • Government entities

    From 1 July 2017, federal, state, territory and local government entities need to report the total payments they make to an entity, wholly or partly, for providing services.

    Additionally, federal, state and territory government entities will need to report the total grants paid to people or organisations that have an ABN. Local government entities don't need to report grants.

    You need to report details of these payments and grants on the Taxable payments annual report (TPAR). Your first TPAR is due 28 August 2018, for the year ending 30 June 2018.

    Watch:
    Are you ready for Taxable Payments reporting for government entities?

    Webinar: [Taxable Payments reporting for government entities. Are you ready? (webinar recording)]
    http://tv.ato.gov.au/ato-tv/media?v=bd1bdiubtcts8o (Duration: 24:01)

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    Government entities that need to report

    Government entities that need to report include:

    • federal government departments
    • executive or statutory agencies
    • statutory authorities
    • state or territory government departments and agencies
    • local governing bodies established by or under state or territory law
    • government-owned corporations
    • organisations that  
      • are either established by the federal government, a state or a territory (whether under a law or not) to carry on an enterprise, or established for a public purpose by an Australian law, and
      • can be separately identified by reference to their location or nature of the activities they carry on, whether or not they're part of a department or branch.
       

    If a government entity is a member of a GST group and each entity in the group makes their relevant payments or grants, they are each required to lodge separate annual reports. The GST group provisions don't apply to the taxable payments reporting system.

    Example: Transport Infrastructure Australia Ltd

    Transport Infrastructure Australia Ltd is a federal government-owned company incorporated under the Corporations Act 2001 and represented by shareholder ministers. Its purpose is to construct a new national highway linking regional communities throughout Australia. It has been established by the government to carry on a public purpose and can be separately identified by reference to the nature of the activities it carries on.

    It is required to lodge a TPAR if it makes payments or grants covered by this reporting measure.

    End of example

     

    Example: State Revenue Office

    A state’s major tax collection agency, the State Revenue Office, is an independent service agency and is located within the state’s Department of Treasury and Finance. It has been established by the state for a public purpose and can be separately identified by the nature of its activities, even though it’s part of a department.

    The State Revenue Office is required to lodge a TPAR if it makes payments or grants covered by this reporting measure.

    End of example

     

    Example: Partly owned government entity

    A local council partly owns a caravan park that is operated by a non-profit organisation. The caravan park pays contractors to maintain facilities, including the pool and gardens.

    As the caravan park is partly owned by the local council, it is considered a government-related entity. The caravan park will need to report payments it makes for services in the TPAR.

    End of example

    Government entities excluded from reporting

    Some government entities are exempt from lodging a TPAR. However, these exemptions don't apply to departments of the Commonwealth, a state or a territory.

    Government entities are exempt if they are:

    • providers of education courses
    • providers of child care, including registered carers and providers of approved child care services
    • hospitals
    • providers of medical services
    • cemeteries, cemetery boards or authorities
    • ministerial councils or related bodies, including those established by the Council of Australian Governments
    • Aboriginal land councils
    • national law bodies established under laws enacted by the states and territories
    • public museums, public libraries or public art galleries
    • community associations – for example, parents and friends associations
    • industry or professional associations, including registration and licencing boards and advisory councils
    • water catchment authorities, catchment councils and natural resource management boards
    • trustees of trusts or managers of funds, established for the public benefit or in the public interest
    • superannuation funds
    • defence force mess halls, canteens, brigades or clubs
    • public zoological gardens, public botanical gardens, public parks, public reserves or public alpine resorts
    • commissions of inquiry or Royal Commissions
    • courts or tribunals
    • Commonwealth, state or territory Houses of Parliament
    • community-based volunteer emergency services – for example, Country Fire Associations, volunteer fire brigades and State Emergency Services
    • entities with the primary purpose of promoting the arts
    • entertainment, recreation or sporting venues, including showgrounds, stadiums and racecourses or entities with the primary purpose of managing such venues
    • seaports or airports
    • prisons, detention centres, remand centres, or corrections offices
    • embassies or consular offices.

    If an arrangement exists where a government entity that is not exempt, makes payments on behalf of an exempt government entity, then the government entity making the payments is required to report them to us.

    Example: Reporting entity making payment on behalf of an exempt government entity

    A prison (that is exempt from reporting) engages a contractor to fix plumbing. The payment for the plumbing is made by a state government department to the contractor.

    As the state government department is not exempt from reporting, it will need to report the payment in its TPAR.

    End of example
    Last modified: 04 Oct 2018QC 48850