Penalties for Overdue TPAR
The Taxable Payments Annual Report
Lodgement Due Date – 28th August Annually
The Taxable Payments Annual Report (TPAR) must be lodged by 28th August each year. If your business makes payments to contractors you may need to report these payments in a TPAR.
From the 23rd of March 2022, the ATO will apply failure to lodge penalties to those who:
- Did not lodge their 2021 or prior year TPAR.
- Have already been sent three non-lodgment letters about their overdue TPAR.
- Do not respond to our follow-up phone call about their overdue TPAR.
In coming weeks, the ATO may phone business owners about their overdue TPAR, to follow up the non-lodgment letters they have sent.
If you have overdue TPARs, lodge them now.
ICB Remind Business Owners:
- You may face penalties for an overdue TPAR.
- If necessary, lodge a TPAR by 28th August each year.
- Keeping good records makes preparing TPAR easier. Setting up TPAR reporting in software makes this an easy report.
- Consider lodging a nil report or no report necessary if your business is no longer providing TPRS listed services.
The details you need to report include:
- The contractor’s ABN.
- Their name (individual or business).
- Their address.
- The gross amount you paid to them for the financial year, including any GST paid and any tax withheld.
Be aware that if you receive invoices that include both labour and materials, you have to report the total amount of the payment. This is regardless of whether the invoice is itemised or combined. If you use the same contractors throughout the year, check with these people that their ABN is the same and hasn’t changed over the period. You can use the ABN Lookup facility online to check ABNs if needed.
Source: ATO – Penalties for overdue TPAR