Do you provide cleaning or courier services? New tax reporting requirements are now in place and from the 2018/19 financial year, you will be required to lodge a Taxable payments annual report (TPAR) to advise the Australian Taxation Office (ATO) about any payments you make to contractors.
Contractors can include:
- Consultants; and/or
- Independent contractors.
So, what do you need to do?
If your business provides cleaning or courier services, you will need to keep records about the payments you make to contractors for the cleaning or courier services they provide on your behalf. Information you need to report on, includes:
- Their Australian Business Number (ABN), where known;
- Their name and address; and
- The total amounts you paid them during the financial year, including any GST.
Typically, this information is available on the invoices you should receive from your contractors.
The first TPAR will need to be lodged by 28 August 2019 for payments made to contractors between 1 July 2018 and 30 June 2019.
For more information about the changes, including working out whether or not you will be required to report, visit the ATO website. Alternatively, chat to your Accountant.