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  • Work out if you need to lodge a TPAR

    Some businesses and government entities need to lodge a Taxable payments annual report (TPAR). You lodge a TPAR for payments made to contractors for services. Some government entities need to report grants paid to people or organisations with an Australian business number (ABN).

    A TPAR must be lodged by 28 August each year.

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    Payments businesses and government entities need to report

    Businesses need to report payments made to contractors or subcontractors during the financial year.

    If you are a government entity, there are specific requirements for when you must lodge.

    Taxable payment reporting system (TPRS) services

    If your business is primarily in building and construction services, find out if you need to lodge a TPAR.

    If you are providing cleaning services, find out if you need to lodge a TPAR.

    If you are providing road freight and courier services, find out if you need to lodge a TPAR.

    If you are providing information technology services, find out if you need to lodge a TPAR.

    If you are providing security, investigation or surveillance services, find out if you need to lodge a TPAR.

    When your business provides TPRS services and other unrelated services

    From 1 July 2019, if your business provides both courier and road freight services, you must combine the payments you receive for both these services. Do this when you work out if you need to lodge a TPAR.

    If TPRS services are only part of the services your business provides, you need to work out what percentage of the payments you receive are for TPRS services each financial year. You do this to determine if you need to lodge a TPAR.

    This does not apply to building and construction services you provide.

    If the total payments you receive for TPRS services are:

    • 10% or more of your business income: you must lodge a TPAR
    • less than 10% of your business income: you do not need to lodge a TPAR.

    Steps to work out if you need to lodge

    Step 1: calculate your total payments received from contractors for each relevant service.

    Add up all payments your business received from contractors for each relevant service during the financial year. Do this even if an employee or a contractor performed those services on your behalf.

    Do not include payments where both apply:

    • you make payments to contractors for providing these services on your behalf
    • if the services provided are only ancillary or incidental to the goods or other services your business provides.

    Step 2: calculate your current or projected business income

    If you have been operating your business for:

    • the full financial year: use your current business income for the year
    • less than 12 months of the financial year: use your projected business income. Do this by working out what your business income will be for the next full financial year.

    Step 3: calculate what percent of your business income is from a relevant service

    Calculate this percentage by using the following formula for each financial year:

    Total payments received for a relevant service × 100 divided by Current or projected business income

    You must lodge a TPAR if:

    • 10% or more of your business income for the financial year is from a relevant service
    • you also made payments to contractors for a relevant service during the year.
    Last modified: 26 Aug 2021QC 55378