As from 1 July 2018 businesses in the Courier and Cleaning industries must report annually to the tax office those payments made to contractors. The payments are entered on the Taxable Payments Annual Report (TPAR).
The Taxable Payments Annual Report will need to contain the contractor’s ABN, name, address and total payments made for the year including the amount of the GST.
Contractors include sole traders, companies, trusts and partnerships.
A courier service will encompass activities where items or goods are collected and delivered to any place in Australia using any method of transport including a car, bicycle, motor cycle or on foot.
A cleaning service will include any activities to buildings, machinery and equipment.
The reporting requirements will not apply to businesses where their income from courier/cleaning services is less than 10% of their total turnover for the year.
Additionally, payments are not required to be reported in the TPAR for payments for materials only and where invoices remain unpaid at the end of the income year.
Currently the Building industry is subject to these requirements and as from 1 July 2019 businesses in the Road Freight, Security and Information Technology will come under the umbrella of having to report payments made to contractors.
If you are using accounting software such as Xero or MYOB then you are able to electronically lodge the form by 28 August each year. We recommend you review and set up your systems now so as the report can easily be produced and lodged by 28 August 2019.
If you require further details on how the reporting requirements apply to your business or require assistance with your review, set up and lodgement of your TPAR report then please contact us to discuss your options.