Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
Subscribe to our newsletter SIGN UP

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Holiday season contractor spike triggers TPAR concern

Tax practitioners have been urged to keep an eye out for business clients using more cleaning or courier contractors this holiday period as they could fall under new reporting requirements.

Tax&Compliance Jotham Lian 13 November 2019
— 1 minute read

The ATO has warned that in the lead-up to the holiday season, it often sees businesses that provide mixed services making increased contractor payments to cleaning and courier services.

Advertisement
Advertisement

This increase might result in businesses needing to lodge a taxable payments annual report (TPAR) in August 2020.

Examples of businesses that might be making increased contractor payments include building maintenance, property management and event management businesses engaging contractors to provide cleaning services, and florists and other retail businesses engaging contractors to provide courier services.

Businesses providing mixed services will need to lodge a TPAR if payments they receive for cleaning or courier services make up 10 per cent or more of their total GST turnover, even if the business is not registered for GST.

“Check with your business clients who provide mixed services now to ensure they keep the right records to help them report when TPAR lodgement is due in August 2020,” the ATO said in an online update.

“This includes checking their contractors are working under a valid ABN.”

Businesses that provide cleaning or courier services lodged their first TPAR in August this year, joining businesses in the building and construction industry that have been doing so since 2012.

The road freight, security, investigation, surveillance and information technology (IT) industries are set to lodge their first TPAR due by 28 August 2020.

Holiday season contractor spike triggers TPAR concern
image intro
accountantsdaily logo
Jotham Lian

Jotham Lian

Jotham Lian is the news editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.

Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.

You can email Jotham at: This email address is being protected from spambots. You need JavaScript enabled to view it. 

Tax&Compliance
FROM THE WEB