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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.
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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)
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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. |
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 |
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). |
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:
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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: |
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. |
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