Expansion of Taxable Payments Reporting System to Road Freight, IT and Security, Investigation and Surveillance Services
Effective from 1 July 2019, Taxable Payments Reporting obligations apply to businesses providing Road Freight, IT and Security, Investigation and Surveillance services, with the first Taxable Payments Report due on 28th August 2020.
About Taxable Payments Reports
The Taxable Payments Reporting System (“TPRS”) requires businesses in certain industries to report details of payments made to contractors.
The aim is for the ATO to be able to match information and ensure contractors are registered for GST when required, and report and pay tax on their total earnings.
Taxable Payments Annual Reports (TPAR) must be lodged for each financial year that you had an Australian Business Number (ABN) and made any payments to contractors for Road Freight, IT and Security, Investigation and Surveillance services provided by them on your behalf.
Does this affect your business?
This may apply to you if within your business you provide:
Road freight services such as but not limited to:
- Removal Services
- Haulage Services
- Road freight forwarding services
- Truck Hire/Lease Service (with driver)
- Delivery of goods sold that is not incidental or integral to the supply.
IT services including but not limited to:
- computer facilities management
- computer hardware consulting
- computer network systems design and integration
- computer programming
- computer software consulting
- internet and web design consulting
- IT consulting
- software development
- software installation
- software simulation and testing
- systems analysis
- technical support
Security, Investigation or surveillance activities such as but not limited to:
- lock smithing
- burglary protection
- alarm monitoring and response
- armoured car service
- detective agency service
- night watch service
- crowd, event or venue control
- body guarding or close personal protection
- operating a security control room or monitoring centre
- operating security screening equipment (such as prohibited item detectors, x-ray scanners, and explosive trace detection)
- security guard service.
What information do you need to report?
When preparing your TPAR, the details you need to report for each contractor are:
- name (business name or individual's name)
- the following amounts paid during the financial year;
- gross amount paid (including GST and any tax withheld)
- total GST included in the gross amount paid (if any)
- total tax withheld where a valid ABN was not quoted.
How do you lodge a TPAR?
The TPAR can be lodged either electronically or via a paper statement. To lodge a TPAR electronically, the file needs to be submitted in a format that is supported by the ATO’s systems. Your accounting software should allow you to produce an annual report data file that meets the ATO requirements.
Are there any exclusions?
There is no requirement to lodge the taxable payments reports in respect of payments you make to contractors, if payments you received for the provision of the relevant services for the financial year are less than 10% of your current or projected GST turnover (gross income less GST).
Please note that for the purposes of calculating the turnover you consider courier and road freight services on a combined basis. The same applies for security, investigation and surveillance services
If this is your situation, we suggest that you complete the Taxable Payments Annual Report – not required to lodge form, to avoid unnecessary follow up from the Tax Office.
How we can help?
If you would like assistance to determine if the Taxable Payments Reporting obligations apply to your business or if you require support to prepare and lodge your Taxable Payments Reports please contact your usual Mazars advisor or alternatively speak to our specialists on:
Brisbane – Matthew Beasley
Melbourne – Liliana Harris
Sydney – Dean Newman
+61 7 3218 3900
+61 3 9252 0800
+61 2 9922 1166
Author: Liliana Harris, Associate Director
Source: https://www.ato.gov.au/Business/Reports-and-returns/Taxable-payments-annual-report/Work-out-if-you-need-to-report/, n.d
Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.