As part of the taxable payments reporting system (TPRS), many businesses lodge a Taxable payments annual report (TPAR) to report payments made to contractors for providing the following services:
- building and construction
- courier
- cleaning
- information technology (IT)
- road freight
- security, investigation or surveillance.
If you work as a contractor providing any of these TPRS services, remember to include all your income on your tax return.
To help you get it right, we can include information reported to us about contractor payments to you in our:
- pre-filling service. If you're a sole trader, you or your registered tax agent may use our pre-filling service to easily include these payments in your tax return.
- Reported transactions service in ATO online platforms. These records give you transparency about the data that has been provided to us about your business transactions.
Why we collect this information
Collecting information about contractor payments in the TPAR helps us:
- identify contractors who do not meet their tax obligations so we can let them know and help them correctly report their income
- make sure businesses aren't disadvantaged by competitors who don't declare all their income.
Other contractor tax obligations
We have information to help you stay on top of your other tax and super obligations when working as a contractor, including:
- what you need to do when starting a business
- tax registrations you may need
- keeping records