LATEST ACCOUNTING NEWS
Tax Time Checklists - Individuals; Company; Trust; Partnership; and Super Funds
Compare your business
2024 Year End Tax Planning Guide (Part 2)
ATO to crack down on rental income, WFH deductions this tax time
How to Draft a Standard Form Contract
GST, PAYG withholding a ‘significant portion’ of $50bn tax debt
ATO changes will make it harder for over 42,000 small businesses.
The Deadliest pandemics in History
Budget breakdown – Federal Government Analysis
Winners & Losers
Federal Budget 2024
2024 Year End Tax Planning Guide (Part 1)
Medicare levy surcharge OR basic health insurance ?
ATO warns of ‘serious penalties’ for unlawful tax scheme promoters
ACCC scam report
Employees taking more sick days - and it's getting worse
Foreign residents selling property in Australia
How much does negative gearing really cost – an overview and an opinion?
The Shortest-reigning Monarchs in History
FBT Reminder – Odometer Reading
ATO’s debts on hold campaign prompts new IGTO guidance
A comprehensive collection of small business benchmarks
The 2025 Financial Year tax & super changes you need to know!
Underperforming employees: When can you terminate?
A comprehensive list of guides to industry specific tax deductions.
‘Renewed concerns’ about economy sees consumer sentiment dip: Westpac
Oldest Buildings in the World.
Small businesses may ‘collapse under strain of payday super’, IPA warns
ATO’s hands tied with scrapping on-hold debts, expert says
What Drives Your Business Growth and Profits?
Australian Taxation Office (ATO) shifting to firmer debt collection activity
Vimeo test
Quarter 1 January - March 2024
Quarter 4 October - December 2023
Quarter 3 July - September 2023
Quarter 2 April - June 2023
Quarter 1 January - March 2023
Quarter 4 October - December 2022
Quarter 3 July - September 2022
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Contractor payments (TPAR) are increasingly on the ATO’s radar
Superannuation and independent contractors: fresh Full Federal Court guidance
Intergenerational Report 2023
Property investors beware: new data matching program
When will we learn to protect ourselves from ourselves?
Federal Government toughens up employment laws.
Small Business Tax Time toolkit for 2023.
Oldest Buildings in the World
Australian Taxation Office (ATO) target areas for tax time 2023
Taxing unrealised capital gains a grave concern: Burgess
Protect your business from cyber threats
Is your content making you income?
Australian Taxation Office (ATO) ride-sourcing data-matching program extended
How a registered trade mark can grow your sales and your business
The top modes of transport in the world
Considerations When Negotiating a Resolution
Things you can do in our digital office
Working from home expenses for 2023
Five questions that indicate how financially literate you are.
New laws come into effect from July 1
Preparing for EOFY tax scams with business and cyber resilience
Any tax debts in arrears?
Scammers continue to fleece unsuspecting victims
Top 50 Greatest Cuisines
Contractor payments (TPAR) are increasingly on the ATO’s radar

 

The deadline for submitting this report is the 28th August 2023.  While it may be difficult sometimes to differentiate between an employee and a contractor the form still has to be submitted.  Your accounting software can most likely help.

 



 


The ATO has drawn a line in the sand for reporting contractor payments and warns tardy businesses that missing its deadline will involve penalties and set off alarm bells about dodgy behaviour.


It is estimated that the shadow economy costs Australia $12.4 billion a year in lost taxes. It is the job of the ATO to recover this money and reports such as the Taxable Payments Annual Report (TPAR), due by 28th August, and other ATO systems are increasingly effective at clawing this money back.


It is getting harder for businesses to hide from the ATO, like using cash payments to avoid tax, as the TPAR data gives the ATO the extra puzzle pieces it needs to catch-out such dishonest behaviour. 


All lost taxes have to be made up by those business and individuals who do not indulge in activities such as paying cash, payments that temp some to pay less tax than they should. It may seem like a win to some, but it is a penalty for every honest business and individual.


The ATO says, "If you are asking for cash and not declaring it to the ATO, you will receive a ‘please explain’ and you will be penalised. It’s not a matter of ‘if’, it’s a matter of ‘when’.”


The TPAR system recorded $400 billion in payments made to almost 1.1 million contractors in 2022–23.


The typical businesses paying contractors included those in building and construction, cleaning, courier and road freight, information technology and security, and investigation or surveillance services.


The Tax Office had recently issued more than 16,000 penalties to businesses which failed to lodge previous TPARs with the average penalty about $1,110.


The ATO also said that failure to meet the deadline could be seen as a “red flag and prompt closer scrutiny”. 


The TPAR is just one weapon in the ATO’s arsenal helping expose missing income and keeping things fair for businesses doing the right thing.


Steps to work out if you need to lodge


Step 1: calculate your total payments received from contractors for each relevant service.


Add up all payments your business received for each relevant TPRS service during the financial year. Include payments received when employees, contractors or sub-contractors performed services on your behalf.


Step 2: calculate your current or projected business income


If you have been operating your business for:


  • the full financial year: use your current business income for the year
  • less than 12 months of the financial year: use your projected business income. Do this by working out what your business income will be for the next full financial year.

Step 3: calculate what per cent of your business income is from a relevant service


Calculate this percentage by using the following formula for each financial year:


Total payments received for a relevant service ÷ current or projected business income x 100 = %


You must lodge a TPAR if:


  • 10% or more of your business income for the financial year is from a relevant service, and
  • you made payments to contractors for a relevant service during the year.

If you need to lodge a TPAR, report the total contractor payments made to each contractor for the relevant service provided on your behalf.


 


 


ATO




28th-September-2023
 
CPA logo Peter I Price & Associates Pty Ltd
Phone: (07) 3376 3411| Email: info@peterprice.com.au
15 Loffs Road, Mt Ommaney QLD 4074
Liability limited by a scheme approved under Professional Standards Legislation.