ATO Widens Net as Contractor Report Deadline Looms

The Australian Tax Office has warned businesses that pay contractors may need to lodge a taxable payments annual report (TPAR) by 28 August 2020.

This year, many more businesses are included in the TPAR net, including those that pay contractors to provide road freight, information technology, security, investigation or surveillance services.

Businesses providing building and construction, cleaning or courier services are already required to report.

ATO assistant commissioner Peter Holt said businesses should take the time to check if they needed to lodge a TPAR. Mr Holt said that, due to COVID-19, many businesses had needed to contract out more services. He said the TPAR helped create a more level playing field in the contracting sector, which was already doing it tough.

“It is not fair if an honest contractor misses out on business because a competitor is undercutting them by doing things like under-declaring or not declaring income,” Mr Holt said.

The ATO is aware that many restaurants, cafés, grocery stores, pharmacies and retailers had started paying contractors this year to deliver their goods to customers as a result of COVID-19.

Mr Holt said these businesses may not have previously needed to lodge a TPAR.

“However, if the total payments received for these deliveries or courier services are 10 per cent or more of the total annual business income, you’ll need to lodge,” Mr Holt said.

The ATO expects more than 280,000 businesses to complete a TPAR for the year ending 2019–20.

If you own a business and think you may need to lodge a TPAR by the end of August, contact Affinitas Accounting on 07 33595244 or office@agilisaccountants.com.au