Annual reporting to the ATO of contractor payments

The taxable payments reporting system (TPRS) requires businesses to report to the ATO all payments made to contractors during an income year. This additional reporting is in the form of an annual report that is used by the ATO to cross check that contracting income is being correctly declared by contractors. The annual report is to be lodged with the ATO by 28 August each year and penalties may apply for not lodging an annual report by the due date.

At present the TPRS only applies to businesses in the following industries:

  • building and construction;
  • cleaning; and
  • couriers.

However, the 2018 Federal Budget included an announcement that from 1 July 2019 the TPRS would also apply to the following industries:

  • security providers and investigation services;
  • road freight transport; and
  • computer system design and related services.

For many businesses it will be quite clear that they are part of an industry to which the TPRS applies. However, for some businesses, particularly those with mixed supplies, it will not be clear whether they are required to report to the ATO under the TPRS.

We can assist if there is any doubt as to whether a particular business is included in one of the above industries.

UPDATE: The Act extending the TPRS to industries including security providers and investigation services, road freight transport, and computer design and related services received royal assent on 29 November 2018 and is now in effect.

Recent Articles

Changes for MYOB subscription holders

18th May 2022

There have been some important changes to MYOB subscription payments. Up until this point, Roberts & Morrow have managed your subscription (practice... Read More

Merger Date & Location Announced

13th May 2022

We would like to provide a further update to clients on our plans in relation to the proposed merger... Read More

All the Winners from the Fleece to Fashion Gala Awards 2022

12th May 2022

The Fleece to Fashion Awards was held at the Deeargee Woolshed on Monday and attracted fashion design entries from... Read More

COVID-related support for SMSFs

27th April 2022

Because of the financial impacts of COVID-19, you (in your role as trustee of an SMSF), or a related... Read More