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  • Black Economy Taskforce: extension of the taxable payments reporting system (TPRS)

    The term ‘black economy’ has now changed to ‘shadow economy’. This change reflects the Organisation for Economic Co-operation and Development’s (OECD) definition of unreported or dishonest economic activity. References to the Black Economy Standing Taskforce (BEST) will remain and the taskforce will continue to focus on activities identified under the OECD definition of ‘shadow economy’.

    TPRS extension to contractors in the courier and cleaning industries

    On 9 May 2017 the Government announced that from 1 July 2018 businesses that supply courier or cleaning services will need to report payments made to contractors if the payments are for courier or cleaning services.

    These payments must be reported to the ATO each year using the Taxable payments annual report.

    The first annual report for these businesses is due by 28 August 2019.

    Legislation and supporting material

    The Treasury Laws Amendment (Black Economy Taskforce Measures No. 1) Act 2018External Link received royal assent on 3 October 2018. The amendments extending TPRS to the courier and cleaning industries appear in Schedule 2 of that Act.

    A legislative instrument (Taxable Payments Reporting System - Reporting Exemptions for Certain Entities Determination 2019) is available on the Federal Register of LegislationExternal Link. This legislative instrument exempts businesses supplying courier or cleaning services from the need to lodge a Taxable payments annual report, if the payments they receive for those services make up less than 10% of their annual GST turnover.

    A Law Companion Ruling (LCR 2018/8 Expansion of taxable payments reporting system to courier and cleaning services) is available on ATO Law.

    Administrative treatment

    Businesses supplying courier or cleaning services need to review their payments made to contractors for these services from 1 July 2018 and complete and lodge a Taxable payments annual report by 28 August 2019 for the 2018–19 income year;

    • those businesses that recorded their payments and lodge their annual report in accordance with the changes do not need to do anything more
    • those businesses that did not record their payments to contractors will need to review their records and compile a summary of all payments made after 1 July 2018 and the required details for each payment.

    Businesses supplying courier or cleaning services are not required to lodge a Taxable payments annual report for an income year if payments they receive for courier or cleaning services make up less than 10% of their GST turnover for that year.

    See also:

    TPRS extension to contractors in the road freight, security, investigation, surveillance and information technology (IT) industries

    On 9 May 2018, the Government announced that from 1 July 2019, businesses that supply road freight, security, investigation, surveillance or IT services will need to report payments made to contractors if the payments are for road freight, security, investigation, or IT services.

    These payments must be reported to the ATO each year using the Taxable payments annual report.

    The first annual report for these businesses is due by 28 August 2020.

    Legislation

    The Treasury Laws Amendment (Black Economy Taskforce Measures No. 2) Act 2018External Link received royal assent on 29 November 2018. The amendments extending TPRS to the road freight, security, investigation, surveillance and information technology (IT) industries appear in Schedule 2 of that Act.

    A legislative instrument (Taxable Payments Reporting System - Reporting Exemptions for Certain Entities Determination 2019) is available on the Federal Register of LegislationExternal Link. This legislative instrument exempts businesses supplying road freight, security, investigation, surveillance or IT services from the need to lodge a Taxable payments annual report, if the payments they receive for those services make up less than 10% of their annual GST turnover.

    A Law Companion Ruling (LCR 2019/4 Expansion of the taxable payments reporting system to road freight, security, investigation, surveillance, and information technology services) is available on ATO Law

    See also:

      Last modified: 30 Aug 2021QC 53814