Show download pdf controls
  • Work out if you need to report

    Some businesses need to report information to us about the payments they make to contractors for services.

    This information must be reported to us on the Taxable payments annual report (TPAR). You may need to check the way you keep information about your payments to contractors to make completing your TPAR easier.

    Follow the links below to work out if you need to lodge a TPAR.

    Find out about:

    Building and construction services

    If you're running a business in the building and construction industry, you will need to lodge a Taxable payments annual report (TPAR) if you:

    • make payments to contractors for building and construction services, and
    • have an Australian business number (ABN).

    You need to report these payments to us on the TPAR by 28 August each year.

    The definition of building and construction services is broad and covers a wide range of occupations and activities. It includes services such as bricklaying, plumbing, fencing and it also includes architectural work (including drafting and design), decorating (including painting), engineering and landscaping construction.

    You can find other examples of occupations and activities (in English) on our website. You will also find a list of examples of buildings, structures, works, surfaces or sub-surfaces, which includes housing, commercial and industrial buildings, footpaths, sports fields and tunnels.

    See also:

    Example: Business in the building and construction industry paying a contractor for building and construction services

    Mohamed is a builder, and Mario is an electrician. Mohamed is managing a new property development, and has contracted Mario to install the wiring in all the houses. Mario is providing building and construction services to Mohamed’s building and construction business.

    Mario invoices Mohamed for work completed, including amounts for the supply of materials. Mohamed already needs to keep records for tax purposes. He also needs to report the total of all the payments he makes to Mario throughout the year to the ATO on the Taxable payments annual report (TPAR).

    End of example

    Authorised by the Australian Government, Canberra 

    Cleaning services

    If you run a business that provides cleaning services (even if it's only part of the services you provide), you must lodge a Taxable payments annual report (TPAR) for each financial year you:

    • have an Australian business number (ABN)
    • make any payments to contractors for cleaning services they provide on your behalf.

    If your business provides mixed services, not just cleaning, you may need to lodge a TPAR if the payments you receive for cleaning services make up 10% or more of your total GST turnover.

    You must reassess whether you need to lodge a TPAR each year.

    If you're unsure if you need to lodge a TPAR, check our resources to help you or speak with your registered tax agent. You can choose to lodge a TPAR even if you think you don't need to.

    Your first TPAR for payments made to contractors from 1 July 2018 to 30 June 2019, is due by 28 August 2019.

    You may need to check the way you keep information about your payments to contractors to make completing your TPAR easier.

    See also:

    What are cleaning services?

    Cleaning services include, but are not limited to, any of the following activities undertaken on a building, residence, structure, place, surface, transport/vehicle, industrial machinery or equipment and for events:

    • interior cleaning
    • exterior cleaning (except sandblasting)
    • carpet cleaning
    • chimney cleaning
    • gutter cleaning
    • road sweeping and street cleaning
    • swimming pool cleaning
    • park and park facilities cleaning.

    ‘Events’ include staging of sporting, cultural, scientific, technological, agricultural or entertainment events and exhibitions.

    ‘Transport/vehicles’ includes trains, trams, buses, ferries, airplanes, ships, trucks, cars and other motor vehicles.

    Examples and further definitions of cleaning services (in English) are available on our website.

    Example: Cleaning business paying contractors for cleaning services

    John and Betty Cleaning Services has an ABN and has contracts to clean office buildings and schools in their local area. From time to time, they hire contractors to help them with the cleaning.

    As a cleaning business, John and Betty Cleaning Services will need to report all payments they make to contractors that undertake cleaning services for them.

    End of example

    Does your business provide other services?

    If cleaning is only part of your business, you need to work out:

    • how much of your business income is from cleaning services you provide?
    • what is your total GST turnover for the financial year (that is, your business  income, not your profit)?

    If the total payments you receive for cleaning services are:

    • 10% or more of your GST turnover - you must lodge a TPAR to report any payments you make to contractors for cleaning services
    • less than 10% of your GST turnover - you do not need to lodge a TPAR.

    You can calculate this percentage by using the following formula for each financial year:

    Total payments received for cleaning services ÷Total current or projected GST turnover × 100

    Example: A business providing cleaning and other services

    Jehan and Bhuvan Building Services (JBBS) has an ABN and provides a range of building maintenance services, including office cleaning.

    The office cleaning can be identified separately from the other services it provides.

    JBBS uses contractors to perform the office cleaning work.

    They work out the following amounts for the financial year:

    • total current GST turnover for JBBS = $100,000
    • total payments received by JBBS for cleaning services = $10,000
    • total payments JBBS paid to contractors = $5,000
    • total payments JBBS paid to employees = $6,000

    To work out if they need to lodge a TPAR, JBBS calculate the following:

    $10,000 divided by $100,000 × 100 = 10%

    JBBS need to lodge a TPAR as the payments they received for cleaning services ($10,000) represent 10% of its total current GST turnover for that year ($100,000).

    They need to report the total amounts (adding up to $5,000) that they paid to each of their contractors for cleaning services in their 2018-19 TPAR. They don't include the $6,000 for payments made to their employees because the TPAR is for reporting payments to contractors only, not employees.

    End of example

    Authorised by the Australian Government, Canberra 

    Courier services

    If you run a business that provides courier services (even if it's only part of the services you provide), you must lodge a Taxable payments annual report (TPAR) for each financial year you:

    • you have an Australian business number (ABN)
    • make any payments to contractors for courier services they provide on your behalf.

    If your business provides mixed services, not just courier services, you may need to lodge a TPAR if the payments you receive for courier services make up 10% or more of your total GST turnover.

    You must reassess whether you need to lodge a TPAR each year.

    If you're unsure if you need to lodge a TPAR, check our resources to help you or speak with your registered tax agent. You can choose to lodge a TPAR even if you think you don't need to.

    Your first TPAR for payments made to contractors from 1 July 2018 to 30 June 2019, is due by 28 August 2019.

    You may need to check the way you keep information about your payments to contractors to make completing your TPAR easier.

    See also:

    What are courier services?

    Courier services include activities where items or goods are collected from, and/or delivered to, any place in Australia using a variety of methods including by car, truck, station wagon, van, ute, motorcycle, motorised scooter, bicycle or other non-powered means of transport, or on foot.

    Courier services are usually door-to-door services for specialty deliveries or for small parcels or packages. Goods commonly transported using courier services include parcels, packages, letters, food and flowers.

    Courier services don't include:

    • delivery of goods your business provides where delivery is the only method your clients or customers have of receiving the goods
    • passenger transport services - for example, buses and taxis
    • freight transport - the transportation of bulk or large quantities of items, goods or commodities via rail, sea, air, or road (usually heavy vehicle trucks or larger vehicles) from one location to another.

    Examples and further definitions of courier services (in English) are available on our website.

    Example: Business in the courier industry paying a contractor for courier services

    Active Couriers Pty Ltd is a business with an ABN that provides parcel and delivery services to a range of clients.

    Active uses four contractors throughout the year to make deliveries. Lee is one of these contractors and gives Active an invoice for the deliveries he completes.

    As a provider of courier services, Active will need to report all payments it makes to contractors, including Lee, that undertake courier services for them.

    End of example

    Does your business provide other services?

    If courier services are only part of your business, you need to work out:

    • how much of your business income is from courier services you provide?
    • what is your total GST turnover for the financial year (that is, your business  income, not your profit)?

    If the total payments you receive for courier services are:

    • 10% or more of your GST turnover - you must lodge a TPAR to report any payments you make to contractors for courier services
    • less than 10% of your GST turnover - you do not need to lodge a TPAR.

    You can calculate this percentage by using the following formula for each financial year:

     Total payments received for courier services ÷ Total current or projected GST turnover × 100

    Example: A business providing courier and other services

    Quick Smart Tailors Pty Ltd is a business with an ABN that provides clothing repair services. They also operate a side business that provides express parcel and letter delivery services for businesses.

    Even though Quick Smart Tailors provides different services, the parcel and letter delivery service they provide is a courier service that is separate from their clothing repair and alteration service.

    Quick Smart Tailors hires couriers to deliver the parcels and letters.

    At the end of the year, if the total payments Quick Smart Tailors Pty Ltd received for courier services is 10% or more of its current or projected GST turnover, it will need to report the payments it makes to contractors for courier services in a TPAR.

    End of example

    Authorised by the Australian Government, Canberra 

      Last modified: 15 Nov 2018QC 43149