Plus 1 Clients & TPAR (Taxable Payments Annual Report)

TPAR is an industry-specific reporting requirement for businesses who pay contractors for relevant services. Essentially, if you pay contractors, you need to report how much you’ve paid, and to whom. This is a relatively new requirement for businesses, but it relates to the increasing practice of businesses using contractors rather than employing full-time staff. It is required to be lodged every year by the 28^th of August.

Which industries need to submit a TPAR?

Not every business needs to complete a TPAR each year, as it’s an industry-specific requirement. The types of businesses required to submit a TPAR include:

• Courier services
• Road freight services
• Building and construction
• IT services
• Cleaning
• Security, investigation and surveillance services

What are TPAR’s used for?

The ATO needs this information to assist with their data matching processes. When you report the payments you’ve made to contractors, the ATO can then check to ensure the contractor has declared the income on their tax return. It’s important because it helps the ATO find out if contractors are declaring all of their income, failing to lodge tax returns or quoting inaccurate ABN’s. They can also determine whether contractors should be registered for GST, if they’re not already.

What details need to be included in a TPAR report?

When getting your TPAR reporting ready, it’s important you have all the relevant details required by the ATO. Most of these details should appear on the tax invoice your contractor provides.

• ABN
• Name
• Address
• Total amount paid
• GST paid (if applicable)

If your contractor doesn’t provide you with this information, you’re entitled to ask for a proper tax invoice that includes all of the necessary details.

Especially for 2023, we’ve seen an increase in the amount of work required to collate appropriate information for lodgement to the ATO. This has added to the time and cost required to meet compliance requirements. At Plus 1 we have created email instructions for Xero, Reckon & MYOB to guide you in organising the required data more effectively. If you haven’t already received this email please reach out to your accountant.

Click on the titles of each paragraph to read the law on the Fair Work website-

Parental Leave
There has been significant movement in parental leave laws this year. The changes grant employees greater access to parental leave and greater flexibility. They also place a greater level of obligation on employers.  From the greater time period that applies for the Government’s personal parental leave scheme to the new flexible form of parental leave – the above link explains everything you need to know so you can rest assured you are meeting your obligations.

Flexible Work Arrangements
This section explains who is legally entitled to request flexible work arrangements, types of flexible work arrangements and how Employers now have greater obligations when it comes to considering and responding to requests for flexible work arrangements.

Family and Domestic Violence
This section explains the entitlements of employees who are affected by family and domestic violence, and laws with which you must comply if you have information of family and domestic violence. Your employees now have greater entitlements to family and domestic violence leave, and greater penalties now apply for breaching your obligations.

Fair Work Information Statement (FWIS).

The FWIS must be given to new employees either before their employment begins or as soon as practicable thereafter. An updated FWIS was released and must be used from 1 July 2023.

Casual Employment Information Statement (CEIS)

The Casual Employment Information Statement (CEIS) must be given to casual employees either before their employment begins or as soon as practically feasible thereafter. These employees should also receive a copy of the Fair Work Information Statement as well.

Fixed Term Contract Information Statement (FTCIS)

From 6 December 2023, employers entering into a contract of employment (fixed term) will need to give the employee a Fixed Term Contract Information Statement (FTCIS) before, or as soon as practicable after, the contract is entered into. A copy of this document is not yet available. The FTCIS must be given before, or as soon as practicable after, the contract is signed.

If you have not yet provided any of these documents to staff, you need to do so now to avoid potential penalties for non-compliance.

For more information on the Fair Work website and get your copies  CLICK HERE.