Businesses that provide cleaning and courier businesses are now required by the Australian Taxation Office (ATO) to lodge their first Taxable Payments Annual Report (TPAR) by 28 August 2019.
Building and construction industry has been complying with the taxable payments reporting scheme since 2012, and this is the first year that businesses that provide cleaning or courier services may need to lodge, said ATO Assistant Commissioner Peter Holt.
“Payments made to contractors or subcontractors who have provided cleaning or courier services on behalf of businesses in these industries in the 2018–19 financial year must be reported to the ATO – including cash payments,” Mr Holt said.
Businesses that engage contractors to provide cleaning or courier services on their behalf (even if it is only part of the services you provide), may need to lodge a TPAR if payments received for cleaning and courier services make up 10% or more of their total GST turnover.
How will it affect your business
ATO will use the data provided in the TPAR to identify contractors who are not reporting or under-reporting their income, failing to lodge tax returns or activity statements, not registering for GST, or using false ABNs.
“TPRS prevented $2.7 billion from being lost to the black economy in the 2015–16 financial year, so it’s a very effective way for us to tackle the black economy and keep things fair for businesses who we know are doing the right thing.” Mr Holt said.
“Get it done on time so you don’t miss the deadline – TPAR is not optional and penalties may apply if you do not lodge by the due date,” Mr Holt said.
