If you’ve paid a tradie or other contractor for building and construction services in the past year, you might need to lodge a Taxable payments annual report (TPAR) by 28 August.
You need to lodge a TPAR if you pay contractors for building and construction services and:
- you earn 50% or more of your business income from building and construction services, or
- 50% or more of your business activity is from building and construction services.
Over 70 occupations and work activities meet the ATO definition of ‘building and construction’. They include carpentry, engineering, painting, plumbing and architecture. Check the full list on the ATO website.
If you claim deductions for contractor expenses in your tax return, it’s likely you’ll need to report.
The contractor details you need are usually on the invoices you use to claim GST credits on your BAS and deductions on your income tax return.
Complete your TPAR at the same time as your BAS to make it easier as you’re using the same records.
