Businesses that pay contractors for certain services may need to lodge a Taxable payments annual report (TPAR) with the ATO by 28 August 2020. 

Under the Taxable payments reporting system (TPRS), if your business primarily provides building and construction services and you pay contractors to perform them on your behalf, you may need to report the payments made to the contractors. 

The TPAR is due by 28 August each year.

If you did not lodge a TPAR in 2019 you may still need to do so.

Your business is primarily in the building and construction industry for TPAR if any of the following apply:

• in the current or previous financial year, 50% or more of your business income is earned from providing building and construction services or
• in the current financial year, 50% or more of your business activity relates to building and construction services.

Contractors include subcontractors, consultants or independent contractors. They can be individuals, partnerships, companies or trusts. Payments to employees are not included. This means that if you engage a worker and withhold Pay as you go (PAYG) from their pay, you do not include them in the TPAR.

Businesses should visit ato.gov.au/tpar for information and resources. You can also check out this short Taxable Payments Annual Report Pre-recorded webcast.