Helping your new business understand taxable payments reporting

Helping your new business understand taxable payments reporting

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Taxable payments reporting – what it means for you

We want your new business to have the best chance of success, so we’re letting you know about the taxable payments reporting system (TPRS) and what it means for you.

TPRS applies to businesses that make payments for the following services:

  • building and construction
  • cleaning
  • courier or road freight
  • information technology (IT)
  • security, investigation or surveillance.

 

Making payments to contractors

Businesses need to report the payments they make to contractors, consultants and sub-contractors for these TPRS services, on a Taxable payments annual report (TPAR).

If you make these payments, you’ll need to lodge a TPAR by 28 August every year.

Why the TPAR is important

We use the information reported in the TPAR to help businesses correctly report their income, by making payments visible in myTax and Online services for business. It helps us make sure businesses aren’t disadvantaged by competitors who don’t pay the right amount of tax.

Receiving payments for services

Businesses that pay you for providing these services as a contractor, consultant or sub-contractor are required to report these payments to us.

You need to make sure you include these payments as income on your tax return for the relevant year.


To find out more, visit ato.gov.au/TPRandyou

Or call 13 28 66

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