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TPAR for mixed contractor

Enthusiast

Views 191

Replies 1

I have a business that provides IT services to clients, and I use contractors to supply those services.  I also have contractors that supply IT services to my business, and some contractors that do both (supply IT services to my business and to my clients).

 

What do I need to report on the TPAR?❓

  • All payments to all contractors?
  • All payments to contractors supplying IT services to my clients?
  • Payments made to contractors for supplying IT services to my clients?

 

And a separate, but related question:

Do I need to report payments made to contractors who are not entitled to an ABN?❓

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 0

Hi @jay,

 

Yes, you will be required to report any payments made to contractors or subcontractors on the Taxable payment annual report. If your clients are making the payments to the contractors, then you wouldn’t report those amounts.

 

Anyone carrying on a business should quote their ABN for goods or services they supply to another business.

If they don’t, the payer must:

  • withhold 47% from the payment to the supplier, unless exceptions apply, and
  • send the withheld amount to the ATO. 
  • Supplier to complete the statement by supplier form.

If the tax is not withheld, there should be sufficient records to identify the reason for not withholding.

 

You can read more about Taxable payment annual report and Statement by supplier on our website.

1 REPLY 1

Most helpful response

Former Community Support

Replies 0

Hi @jay,

 

Yes, you will be required to report any payments made to contractors or subcontractors on the Taxable payment annual report. If your clients are making the payments to the contractors, then you wouldn’t report those amounts.

 

Anyone carrying on a business should quote their ABN for goods or services they supply to another business.

If they don’t, the payer must:

  • withhold 47% from the payment to the supplier, unless exceptions apply, and
  • send the withheld amount to the ATO. 
  • Supplier to complete the statement by supplier form.

If the tax is not withheld, there should be sufficient records to identify the reason for not withholding.

 

You can read more about Taxable payment annual report and Statement by supplier on our website.