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Key facts about the TPRS and TPAR

Published: 08/10/2019

The Taxable Payments Reporting System (TPRS) now applies to businesses providing road freight services that a) have an Australian business number (ABN) and b) make payments to contractors for road freight services they provide on a business’s behalf.

These contractor payments are reported to the ATO each year using the Taxable payments annual report (TPAR).

Contractor payments for providing road freight services on their behalf, from 1 July 2019 to 30 June 2020, must be reported in the TPAR by 28 August 2020.

Contractors include subcontractors, consultants or independent contractors. They can be companies, individuals or partnerships.

The information you need to report on the TPAR is the same information generally available on the invoices you should receive from your contractors. It is the same information businesses need when claiming deductions.

Payments to employees are not included. This means that if you engage a worker and withhold Pay as you go (PAYG) withholding from their pay, you would not include them in the TPAR.

Road freight services are services that transport goods in bulk using large vehicles. For example: furniture removal, log haulage, taxi trucks, road vehicle towing services, and transportation of goods, wares, merchandise and materials.

Road freight services don’t include passenger transport services, leasing or hiring trucks without drivers, road freight terminals, crating and packing services for road freight transport, or courier services.

In addition to businesses providing road freight services, the TPRS also applies to:

  • Building and construction industry (from 1 July 2012)
  • Businesses providing cleaning and courier services (from 1 July 2018)
  • Businesses providing IT, security, surveillance and investigation services (from 1 July 2019).


If a business provides both courier and road freight services, they must combine the payments they receive for both these services when working out if they need to lodge a TPAR.

If a business provides a range of services (the ATO refers to these as ‘mixed services’), including road freight and courier services, the business may need to lodge a TPAR if the payments they received for both road freight and courier services make up 10 percent or more of the business’s total GST turnover.

Even if they are not registered for GST, businesses still need to check if they need to lodge a TPAR because all businesses have a GST turnover regardless of whether or not they are registered for GST.

The ATO uses the data provided in the TPAR to identify contractors who may not be doing the right thing with their tax, for example not reporting income, failing to lodge tax returns or activity statements, not registering for GST, or using false ABNs.

Businesses should visit ato.gov.au/TPAR for information and resources.

What about contractors?

  • Contractors need to report all of their income – including cash – accurately when it’s time.

  • If we think someone isn’t declaring all their income, we will contact them.

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Email: admin@cilta.com.au  | Phone: 1300 68 11 34 | Address: PO Box 3161, Caroline Springs, Vic 3023 | ABN 47 367 894 930 All rights reserved.

 

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