Additional Contractor Reporting for Certain Industries

Additional Contractor Reporting for Certain Industries

By Marie Olesen

For some time now, the Building and Construction Industry has been required to lodge an annual Taxable Payments Annual Report (TPAR) with the Tax Office detailing which contractors they have paid, what their ABN is and how much they have paid them during the year. This measure was intended to catch out contractors who were not paying tax on their income.

From 1 July 2018, the government extended this reporting framework to the following industries:

  • Cleaning services
  • Courier services

If you operate in either of these industries, your first TPAR will be due for lodgement by 28 August 2019 and will report all contractors payment made during the 2019 Financial Year (1 July 2018 to 30 June 2019). If you are no longer primarily in any of the industries required to report or have not paid any contractors during the relevant period, you must notify the Tax Office. You can do this via your Tax Agent or via the ATO website.

Under a bill that received royal assent on 29 November 2018, this reporting requirement will be extended to the following industries from 1 July 2019:

  • Security, investigation or surveillance services;
  • Road freight services; and
  • Information Technology services.

Accordingly, any businesses operating in these industries will be required to lodge their first TPAR by 28 August 2020. Click here for further information on Taxable Payments Reporting.