Business in the following industries that make payments to contractors or subcontractors needs to lodge a Taxable Payment Annual Report (TPAR) by the 28th of August each year.
Black or Cash Economy Detection
The TPAR is a black economy measure designed to assist the ATO to identify contractors who don’t report or under-report their income.
The ATO estimates that around 280,000 businesses need to lodge a Taxable payments annual report (TPAR) for 2019-20.
60,000 Business have not reported there (TPR) for the 2020 Financial Year.
The ATO has today confirmed more than 60,000 businesses haven’t yet complied with lodgment requirements under the Taxable payments reporting system (TPR) for 2019-20.
Industries Affected
- Building and Construction
- Has been operating since 2014 Financial Year.
- Cleaning Service
- Started for the 2019 Financial Year
- Courier and Road Freight Services
- Started from the 2019 Financial Year
- IT Services
- Started from the 2020 Financial Year
- Security and Surveillance Services
- Started from the 2020 Financial Year
Below is a list of occupations and work activities that are within the definition of building and construction services:
- architectural work (including drafting and design)
- asphalt and bitumen work
- assembly, installation or erection of pre-fabricated houses
- block laying
- bricklaying
- the building of room components (for example, kitchens, bathroom components, laundry components, cupboards and similar components)
- cabinet making (including joinery and off-site fabrication for installation at a building site)
- cable laying
- communications construction
- concreting (including formwork, pouring and finishing)
- construction and sealing roads
- construction management
- decorating
- demolition
- distribution line construction
- drainage work
- dredging
- earthworks
- electrical machinery, heavy, installation (on-site assembly)
- electrical work (including electrical inspection)
- electrical construction
- elevator and escalator installation and work
- engineering
- equipment rental with the operator (if there is no operator, it is just rental of a good and not a building and construction activity)
- erection of frames
- erection of scaffolding
- excavation and grading
- fencing
- finishing
- flood control system construction
- flooring (for example, tiling, laying carpet, laying linoleum, timber flooring, floating floors, resilient flooring, slate tiles, and similar flooring)
- foundation work
- gas plumbing
- glass and glazing work
- hanging or installing doors
- installation of fittings
- installation of hard-wired alarm systems (security, fire, smoke and similar alarms)
- installation of hot water systems
- installation of pre-fabricated components (for example, kitchens, bathroom components, laundry components, cupboards and similar components)
- installation of pre-fabricated temperature controlled structures
- installation of septic tanks
- installation of solar devices (for example, hot water or electricity connections)
- installation of tanks
- installation of window frames
- installation of windows
- installation or work on devices for heating and cooling
- insulation work (walls, roofs, windows and similar structures)
- internet infrastructure construction
- irrigation system construction
- land clearing
- landscaping construction (including paving and design)
- levelling sites
- painting (internal and external surfaces, including roofs)
- pile driving
- pipeline construction
- plastering (or other wall and ceiling construction)
- plumbing work (including plumbing inspection)
- preparation of site
- project management
- rendering (or other internal or external surface finishes)
- retaining wall construction
- river work construction
- roofing and guttering
- sewage or stormwater drainage system construction
- stonework
- surveying
- swimming pool installation
- swimming pool construction (below ground concrete or fibreglass)
- tiling (walls and similar structures)
- timber work
- wallpapering
- waterproofing interior and exterior surfaces
- weatherboarding.
If you need any advice to implement or report your TPAR, please contact our office.
If you are a contractor in one of the above industries, please be aware all your contract income will be reported to the ATO. Please ensure all contract income is disclosed on your tax returns to avoid any unnecessary ATO investigations.
