If your business primarily operates in the Building and Construction Industry, and makes payments to contractors, you are required to complete and lodge a “Taxable Payments Annual Report (TPAR)’ with the Australian Taxation Office each year.

Businesses primarily in the building and construction industry need to report to the ATO the total payments they make to each contractor for building and construction services for the financial year; with the 2018 TPAR due for lodgement by the 28th of August 2018.

You are considered to be a business that is primarily in the building and construction industry if any of the following apply:

The following Information will need to be included in the report to the Australian Taxation Office for each contractor:

Payments made for materials only, are not required to be included on the TPAR, as well as any unpaid invoices as at 30 June. For example, if you receive an invoice in June but don’t pay that invoice until July, you will report that payment on next year’s TPAR being the year it was actually paid.

For your convenience, we have attached a worksheet which may assist you in collecting and sorting the required information to complete the TPAR, and a link to the ATO TPAR website that details the reporting requirements for businesses within the building and construction industry.

The ATO do use these Taxable Payments Annual Reports in their data matching program to detect contractors who don’t lodge tax returns, or do not include all their income on tax returns lodged.

The Taxable Payments Annual Report can be prepared and lodged via most accounting software like Xero and MYOB. The following videos show how to complete the annual report on Xero or MYOB.

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