From 1 July 2018, businesses that supply cleaning or courier services must report payments made to contractors (if payments are for cleaning or courier services) via the Taxable payments annual report (TPAR) each year.
Those supplying cleaning and courier services are expected to keep appropriate records to ensure a TPAR could be prepared and lodged as soon as practical.
Taxpayers will need to check payments, they have made to contractors from 1 July 2018 and then complete and lodge a TPAR for the 2018-19 income year.
The ATO does not require those taxpayers who recorded their payments and lodged their TPAR (in accordance with the changes) to do anything else.
Those who did not record their payments (to contractors) must review their records and form a summary of all payments made after 1 July 2018 and the required details for each payment.
Businesses who also supply road freight, security, investigation, surveillance or IT services must report payments made to contractors (if payments are for road freight, security, investigation or IT services) from 1 July 2019.
Similar to cleaning or courier service payments, taxpayers are expected to report these payments using the TPAR each year.
For further information on TPAR Extensions please contact our office on 03 9417 3511
