TPAR: What You Need to Know for Timely Lodgement in 2024

For small to medium-sized business owners in Perth and around Australia, staying compliant with tax obligations is crucial. For many companies, filing a Taxable Payments Annual Report (TPAR) is essential for end-of-year compliance. Understanding and fulfilling this reporting obligation is essential to avoid potential penalties, yet, understandably, many businesspeople are still confused about it.



Our Perth tax accountants often hear questions such as, "Why do I need to lodge a Taxable Payments Annual Report?" and "What is a TPAR report?" or "Can I lodge a TAPR myself?" To make things easier for your 2024 filing, we have listed all the essential TPAR information below.

Who Needs to File a TPAR?

Most businesses must file a TPAR if they engage contractors or subcontractors—such as cleaners, couriers, and tradies. Companies must report all payments to contractors and subcontractors in specific industries. These industries include:

• Building and construction services
• Cleaning services
• Courier services
• Road freight services
• IT services
• Security, investigation, and surveillance services

Who Can Lodge My TAPR?

Can you lodge your taxable payments annual report by yourself? The answer is yes, but if your business employs quite a few contractors or has complicated circumstances, it's likely better to hire a business accountant to help.

What to Include?

When compiling your report, you will need to include the total payment amount for invoices covering labour and materials. Both are required reporting figures for your TPAR.

What to Exclude?

Certain payments are excluded from TPAR reporting, such as:

• Payments for materials only
• Incidental labour
• Unpaid invoices after 30 June 2024 (only report paid invoices paid before the end of the financial year)
• Payments to labour-hire workers, employees, and foreign residents working in Australia
• Contractors without ABN or those who are international
• Payments within consolidated groups
• Payments for private or domestic services

Resources

The ATO provides a resources hub and a free reporting worksheet to help you track payments and get organised for annual reporting. This worksheet helps your company recording stay on track, making TPAR submission easier at tax time. Be sure not to submit the worksheet when filing.

What if the Business Supplies Unrelated Services?

This area can be tricky if TPRS services are only a portion of the business's services. In these cases, a percentage must be determined to calculate TPAR requirements. If unsure how to do this, it's always best to take professional advice from an accountant or contact the ATO. It's better to be safe than sorry.

When to Lodge Your TPAR

Your TPAR must be lodged by 28 August 2024, so if you still need to start preparing your report, now is the time to get organised!

How to Lodge Your TPAR

There are several ways to lodge your TPAR:

Create a TPAR data file and use the file transfer function through SBR-enabled business software that can interact directly with ATO online.

Access the ATO's online services via myGovID using the Relationship Authorisation Manager (RAM) and your ABN. File your TPAR under Lodgements.

Use the ATO's online services for individuals and sole traders via myGovID. Select Tax, Lodgements, then Taxable Payments Annual Report.

Have your Business Activity Statements (BAS) agent file your TPAR.

Submit the original TPAR documents to the ATO via post. Please note that the ATO will not accept photocopies or scanned images and must receive the paper before the 28 August deadline.

Need Help with Your TPAR?

If you need assistance with your 2024 TPAR, contact us before the 28 August deadline. Our Ascent Accountants team are here to help you navigate the TPAR lodgement process and ensure your business meets its reporting obligations.