Taxable Payments Annual Report (TPAR) now extends to security, surveillance, freight and IT industries

Do your clients pay cleaning, IT, or freights contractors as part of their business? payments to IT contractors

These and other contractor industries are now included in the Taxable Payment Annual Report (TPAR).

As part of the ATO’s Black Economy Taskforce it was announced that the TPAR would be extended to more industries requiring payments to contractors to be reported to the ATO each year.

If you or your client’s business is in the Building and Construction Industry, you have been required to lodge a Taxable Payments Annual Report (TPAR) which reports your total payments to contractors for some time. Contractors can be companies, trusts and partnerships as well as sole traders.

From 1 July 2018, businesses providing courier and cleaning services were then included, even if it is only part of the business. This addition to the legislation required businesses that made payments to contractors for courier or cleaning services, provided on their behalf, to lodge a TPAR.

And from July 2020, the list of industries using contractors that now have to lodge a TPAR is extended to include security, surveillance, freight and/or IT services.

If your clients are in these industries, you will need to notify them that they will need to record their payments to contractors as their first TPAR will be due in August 2020.

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