Overdue TPAR penalties apply from 22nd March

This is your last chance to submit overdue TPAR before penalties are applied.

Businesses and government entities who make payments to contractors may need to report these payments and lodge a Taxable payments annual report (TPAR).

Contractors can include subcontractors, consultants and independent contractors. They can operate as sole traders (individuals), companies, partnerships or trusts.

A TPAR must be lodged by 28 August each year.

You need to report payments made to contractors or subcontractors for the following services:

  • building and construction services
  • cleaning services
  • courier services
  • road freight services
  • IT services
  • security, investigation or surveillance services.

If you’re not using contractors for these services, there is no need for you to lodge a TPAR.

But if you have overdue TPAR, you should pay attention.

From 22 March 2024, the ATO will apply failure to lodge penalties to those who haven’t lodged their 2023 or prior year TPAR, and to those who have been sent three non-lodgment letters about their overdue TPAR.

Last year the ATO issued approximately $18m in penalties to more than 11,000 businesses.

To check if you need to lodge a TPAR or to find out more information here https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/reports-and-returns/taxable-payments-annual-report


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