Taxable Payment Annual Reporting – Road Freight, Security and IT Services

Do you run a business providing any of the following services (even if it is only part of your service offering)?

  • Road Freight;
  • Security/Investigation/Surveillance; or
  • Information Technology Services.

If so, the ATO has extended the Taxable Payment Annual Reporting (TPAR) system to apply to your industry effective from 1 July 2019.  Under the TPAR system, businesses are required to report the following details for all payments made to contractors:

  • Contractor name
  • Contractor ABN
  • Contractor address
  • Total payments
  • GST (if applicable)

The major software packages (i.e. MYOB, Xero, Quickbooks Online) already have the tracking and reporting functionality in built.  All you need to do is turn it on and ensure each contractors card details are up to date. At the end of the period you can simply run a report from your software and lodge it directly with the ATO.

Do you operate a business that provides mixed services (i.e. you sell building materials and also provide freight to customers to deliver these products)?  In this scenario, you only need to report contract payments using a TPAR when your revenue from providing freight services exceeds 10% or more of your GST turnover.

If you need more information about the types of services that are considered Road Freight, Security/Investigation/Surveillance or Information Technology – see  https://www.ato.gov.au/Business/Reports-and-returns/Taxable-payments-annual-report/.

If you are not sure if you need to report, please contact our office for further information.