Taxable Payment Annual Report the Building and Construction Industry

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Understanding TPAR – Taxable Payment Annual Report the Building and Construction Industry

If you are a business operating in the Building and Construction Industry, you will need to report the total payments you have made to contracting services throughout the year. This Taxable Payment Annual Report (TPAR), will need to be submitted by the 28th of August each year, and is designed to effectively manage important tax information.

The main purposes of the TPAR is ensure that End of Year work and tax returns within the Building and Construction Industry are properly lodged, and that the right income amounts are declared. The ATO will use these reports in conjunction with tax return lodgements and data matching systems, to detect contractors who are not, (1) correctly lodging their tax returns, or (2) not including all of their income on their tax returns.

When filling the forms, found via the ATO Website, you will be asked to provide the following information:
  • The contractor’s name, address and ABN
  • The total amount paid or credited to the contractor over the income year
  • Whether any GST has been paid
  • Any other information you think is relevant
Who does the TPAR reporting regulation apply to?
  • If in the current financial year, more than 50% of your business income comes from providing building and construction services
  • If in at least one of the two past financial years, more than 50% of your business income was a result of providing building and construction services
What occupations and work activities affected?
  • Building and construction services:

Architectural work, Bricklaying, Cabinet making, Concreting, Decorating, Electrical machinery, heavy installation, Excavating and grading, Fencing, Flooring, Glass and glazing work, Hanging or installing doors, and so on.

See the full list at the ATO website – Click Here

  • Goods and services supplied:

Installation of alarm systems, Installation or work on devices for heating & cooling, Insulation work, Irrigation system construction, Pipeline construction, Project Management, Roofing and guttering, Sewage, Swimming pool installation, Timber work, and so on.

See the full list at the ATO website – Click Here

 

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Sources:

Australian Taxation Office. ( 2016, June 23). Taxable payments reporting – building and construction industry. Australian Taxation Office. https://www.ato.gov.au/Business/Building-and-construction/In-detail/Taxable-payments-reporting/Taxable-payments-reporting—building-and-construction-industry/

May Shen. (2016). TPAR for Building and Construction – Tax Accountants South Yarra. MAS Tax Accountants.  http://www.mastax.com.au/tpar-for-building-and-construction-tax-accountants-south-yarra/