Q1. What is TPAR?

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. These payments are reported to the ATO in a Taxable Payments Annual Report (TPAR). The report is due by the 28th of Aug each year.

From 1 July 2017 Taxable Payment Reporting was extended to Government Entities.
From 1 July 2018 Taxable Payment Reporting was extended to the Courier industry and well as those in the Cleaning industry.
From 1 July 2019 Taxable Payment Reporting was extended to the Road Freight Industry, Information Technology Industry and the Security/Investigation/Surveillance Industries.

Q2. How does one use TPAR Generator?

After installing the program, you start by creating a new tpar file. The default name is 'untitled.tpar' which you can save as 'mycompany2013.tpar' or any other suitable name. When creating a new tpar file you have a number of options for inputting the data, manually entering, loading directly from a MYOB® company file, importing from a spreadsheet (tab-delimited file) or loading data from a previously generated electronic report file (default name is 'TPAR.C01' however you can choose any name and extension)

There are 6 buttons on the Main Screen that you then step through:

• Year - where you select a Year Ended 30 June
• Payer - where you enter/edit the Payer information
• Sender - where you enter/edit the Sender information
• Payees - where to enter/edit/add/delete Payees and their data
• Review - where you review all data before generating the final files
• Generate - where you generate the electronic report file for lodgment and pdf advices for Payees etc

Q3. How can the report be submitted to the ATO?

Using TPAR Generator, you can either lodge the Report directly from the software (using SBR) or create the electronic lodgement report file (TPAR.C01), and upload it using the Business Portal or the ATO's Online Services for Business.

Q4. Where should no ABN withholding be reported?

Where amounts are withheld under the no-ABN withholding, you can report the details in the new TPAR OR the Pay as you go (PAYG) withholding where ABN not quoted annual report. So you have an option as to which annual report you include those details.

However, when it comes to advising the Payee, you cannot use the PDF advice generated by TPAR Generator, you must advise the Payee via the PAYG Payment Summary designed for this purpose. See ATO website for more information.

Q5. What is the format for the tab-delimited file for import?

The format is specific to TPAR Generator. There is an import template available on our Downloads page. More details are in the help file.

Q6. What restrictions are in the demo version?

Until registered, TPAR Generator operates in demo mode and the word 'Demo' appears on most screens. The program is fully functional except that when you generate the electronic file for the ATO or the PDF payment advice files, all ABN's will display as 00 000 000 000. In Demo mode, the number of Payees in the lodgment file will be limited to 5. To register, you can enter your registration details under the Help menu.

Q7. If I purchase TPAR Generator, can I prepare a TPAR for more than one business?

Yes. However you will need a Payer ABN Code for each Payer you intend to report for. Each licence has a different number of included Payer ABN Codes, with additional Payer ABN Codes available for $48

Also the number of people who can use TPAR Generator depends on the licence you purchase. There are several licencing options available on our Purchase page. For example with an Individual Single User licence, your registered copy can only be used by you.

There is also a restriction on using the 'Load Data directly from MYOB®' feature - which requires a Serial Number Code (SNC). A Serial Number Code is only required where you want to load data directly from a MYOB® company file. Loading data directly from a MYOB® file is optional. No code is required if you import data from a spreadsheet, etc.

Q8. Is there any limit on the number of Payees that we can report on?

No. There is no restriction on the number of Payees in the report. We have tested the import template to import data for 10,500 Payees. We also generated the ATO file and PDF's - takes a bit longer if you have this many Payees though.

Q9. I need to uninstall TPAR Generator before installing a new version. Will uninstalling affect my preferences, registration details or existing data?

The Downloads page on our website will always link to the latest version. TPAR Generator version numbers are in the form 1.0.0.4 where the first number is the Release Version (in this case Release 1) and the fourth number is the Update number (in this case Update 4).

If you purchased Release 6 or earlier:
Updates are free to users Registered for their current Release number as these are largely for minor improvements and bug fixes. You can continue to use the latest version of your Release until the ATO will no longer accept the Specifications included in that Release. If you are a registered user, use the Check for Update and Download Update feature under the Help menu item. This will ensure you are on the latest update for your Release.

Upgrading from one Release to another will require a new purchase as the new Release involves more substantial improvements and/or required Specification changes.

Uninstalling your current version will not affect preferences, registration details or existing data. The new version will be able to access your existing preferences, registration information and will also open any tpar files you saved using the earlier version.

However if you are upgrading (new Release Number) as opposed to updating (new Update number), your registration details from an earlier Release may no longer be valid for the new Release.

Release 7 and later use annual licences and so you can always use the latest version provided your licence is current.

Q10. When I try to download TPARSetup.exe, I get a message saying this file may not be safe. Should I download it?

Every Browser treats executable files differently. Our file is completely safe, however the browser does not know that and so it may issue a warning message. You should first save the file to your harddrive and you can then check it with your anti-virus or anti-malware software before you run the .exe file. Some examples of messages are listed below:

• IE - 'Security Warning - Do you want to run or save this file?' Choose Save.
• IE - 'The publisher could not be verified' Choose Save.
• Chrome - 'TPARSetup.exe is not commonly downloaded and could be dangerous.' Click dropdown arrow to the right of the Discard button and select Keep.
• Opera - 'It is not known whether this file is safe. Are you sure you want to download it?' Choose Save.
• Firefox - 'You have chosen to open xyx.exe file which is a binary file. Would you like to save this file?' Choose Save

Q. Why was this new reporting system introduced?

The taxable payments reporting system was introduced to address long standing compliance issues by contractors in the building and construction industry. Tax compliance issues that have been identified include:

* non-lodgment of tax returns
* income being omitted from tax returns that are lodged
* non-compliance with GST obligations
* failure to quote an Australian business number (ABN)
* use of an invalid ABN.

Q. Why am I required to report on a cash basis?

This resulted from feedback provided in the consultation process. Many businesses in the building and construction industry are micro businesses, and a significant proportion of these businesses account on a cash basis. We have varied the reporting requirements to only require businesses to report the payments they make to contractors in the financial year in which the payments are actually made (cash basis).

Q. Do I also need to report payments I make to suppliers?

Suppliers who provide building and construction services are also contractors for the purpose of the taxable payments reporting system. Therefore, the total payments you make to suppliers for building and construction services are reportable.

Q. I am in the building and construction industry. Do I report payments to contractors who repair and service my tools and equipment?

No. Maintenance of equipment and tools is not a building and construction service.

Q. If I engage a contractor and reimburse expenses they incurred in the course of providing building and construction services, do I need to include the reimbursed amounts in my annual report?

Yes. If you are a business primarily in the building and construction industry, the reimbursed amount is required to be included in your annual report.

Q. I pay a contractor for materials and labour. What do I report?

You are required to report the total amount of the payment if the payment is for a combination of materials and labour, unless the labour is incidental to the supply of the materials.

Q. I am in the building and construction industry. Sometimes I pay one of my contractors for invoices for both materials and labour. Other times I pay for materials only. Do I report all of the payments I make to this contractor?

You are not required to report payments made for materials only. However, if you are unable to easily separate payments made for materials only without significant administrative effort, you can report all the payments you make to this contractor.

Q. I am a labour hire firm. Do I need to report the payments I make to my workers who are hired under a labour hire arrangement to provide building and construction services?

No. You are not required to report payments if you are required to withhold amounts under the pay as you go (PAYG) withholding provisions for labour hire or on-hire arrangements.

Q. Should I tell my contractors about this reporting requirement?

You can choose to tell your contractors about the reporting requirement, but you are not required to. You may find it more convenient to refer them to the Taxable payments reporting - fact sheet

Q. Do I have to provide my contractors with the details of the amounts I report in relation to payments made to them?

No. There is no requirement to provide your contractors with any details of the information reported, but you can choose to provide your contractors with details of the information you provided if you want.