Businesses that are in the building and construction industry who pay contractors for building and construction services need to report to the ATO the total payments made to each contractor on a Taxable Payments Annual Report (TPAR) at the end of the financial year.
The Taxable Payment Annual Report is required to be lodged with the Australian Taxation office by 28 August each year.
You need to report if all of the following apply:-
- Are a business that is in the building and construction industry.
- Make payments to contractors for building and construction services.
- Have an Australian Business Number (ABN).
You need to report the following information about each contractor:-
- Their name
- Their address
- The gross amount you paid them for the financial year (Total amount paid including GST)
- The total GST included in the gross amount you paid
You are required to report the total payments made to each contractor for building and construction services that are performed on, or in relation to, any part of a building, structure, works, surface or sub-surface.
Building and Construction services covers a wide scope of occupations and activities. It includes services such as bricklaying, plumbing, fencing. This also includes architectural work (including drafting and design), decorating (including painting), engineering and landscaping construction.
If a payment is for both labour and materials, you are required to report the whole amount.
Do not report the following:-
- Payments for materials only.
- Any invoices that you have received but not paid as at 30 June each year.
- Payment which must be reported in a PAYG withholding payment to employees.
- Payments for private and domestic projects.
For assistance with completing and lodging your Taxable Payment Annual Report, please contact Brentnalls SA and ask to speak to one of our advisors.
If you would like to print this information please click here for PDF format
The information provided in this information sheet does not constitute advice. The information is of a general nature only and does not take into account your individual situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.