Taxable Payments Reporting - More Details
The information below is sourced from the ATO website and refers to the Building and Construction industries only.
Further information/clarification about Taxable Payment Reporting by businesses providing:
From 1 July 2012, businesses in the building and construction industry need to report the total payments they make to each contractor for building and construction services each year. You need to report these payments to the ATO on the Taxable payments annual report.
Who needs to report?
From 1 July 2012, you need to report if all of the following apply:
* you are a business that is primarily in the building and construction industry
* you make payments to contractors for building and construction services
* you have an Australian business number (ABN).
You are considered to be a business that is primarily in the building and construction industry if any of the following apply:
* in the current financial year, 50% or more of your business income is derived from providing building and construction services
* in the current financial year, 50% or more of your business activity relates to building and construction services
* in the financial year immediately before the current financial year, 50% or more of your business income was derived from providing building and construction services.
Details you need to report
For each contractor, you need to report the following details each financial year:
* ABN, if known
* gross amount you paid for the financial year (this is the total annual amount paid inclusive of GST)
* total GST included in the gross amount you paid.
The details you need to report will generally be contained in the invoices you receive from your contractors.
Payments you need to report
You will need to report payments you make to contractors for building and construction services.
Building and construction services include any of the activities listed below if they are performed on, or in relation to, any part of a building, structure, works, surface or sub-surface:
* Management of building and construction services
* Organisation of building and construction services
* Site preparation
When to report
Your Taxable payments annual report is due 28 Aug each year.
The first Taxable payments annual report is due 21 July 2013 for payments made in the 2012-13 financial year. In this first year, if you lodge your business activity statement quarterly, you can lodge by 28 July 2013.
(Note from 1 July 2015, the TPAR is due by 28 Aug each year).
Lodging your Taxable payments annual report
You will be able to lodge your Taxable payments annual report by one of the following methods:
* from July 2013, online using the ATO's OSB, Business Portal or Standard Business Reporting (SBR)
* completing a paper Taxable payments annual report (NAT 74109) and mailing it to the ATO.
Payments you do not report
Payments for materials only
You are not required to report on payments if the invoices are for materials only, such as building supplies and materials.
Unpaid invoices as at 30 June each year
Do not report any unpaid invoices as at 30 June each year. For example, if you receive an invoice in June 2012, but you do not pay that invoice until some time in July 2012, you report that payment in the 2012-13 Taxable payments annual report.
Pay as you go withholding payments
You do not report payments that are required to be reported in a Pay as you go (PAYG) withholding payment summary annual report or a Pay as you go (PAYG) withholding where ABN not quoted annual report - for example, payments to:
* workers engaged under a voluntary agreement to withhold
* workers engaged under a labour hire or on-hire arrangement
* contractors who do not quote an ABN.
Payments for private and domestic projects
You will not need to report if you are a home owner making payments to contractors for building and construction services - for example, if you are building or renovating your own home.