2019 saw the ATO’s introduction to Single Touch Payroll for PAYG workers.
2020 will see the ATO’s introduction to TPAR for Pty companies and Trusts.
The TPAR tells the ATO about payments that are made to contractors for providing services. Some government entities also need to report the grants they have paid in a TPAR.
Contractors can include subcontractors, consultants and independent contractors. They can be operating as sole traders (individuals), companies, partnerships or trusts.
The details The Ayers Group will need to report about each contractor are generally found on the invoice submitted. This includes:
- the Australian business number (ABN), if known
- the name and address
- gross amount paid to them for the financial year (including any GST).
The ATO will use this information to identify contractors who haven’t met their tax obligations.
The Ayers Group’s first TPAR for payments made to contractors from 1 July 2019 to 30 June 2020, will be due by 28 August 2020.
Make sure you are working via a true Pty Ltd company or Trust by using our helpful checklist:
| Business Name | Trades under a business name (not their personal name) |
| ABN | Contractor carries on their own business with an Australian Business Number |
| Control | Contractor controls how work is performed and when it is done and is responsible to deliver an outcome or result – not just a set number of hours to attend work. |
| Documentation | Contractor has written contractor agreement for customers to sign eg: a services agreement |
| Hours of workScheduling of work | Contractor can set their own hoursContractor dictates the time frame within which work is performed. |
| Place of work | Contractor can work at a number of locations and may have their own premises.(office or factory) |
| Expenses | Responsible for their own expenses. |
| Website and Advertising | Contractor advertises their own services on the internet and elsewhere and has a website |
| Equipment | Contractor provides & maintains tools & equipment. (laptops, phones other) |
| Delegation | Contractor can delegate all or some tasks to another and may employ others. |
| Ability to accept other work | Contractor performs work for others, or is entitled to do so. (Has more than one customer) |
The Ayers Group offer various Contractor Management solutions depending on your situation.
Speak to your Account Manager should you be considering a change in structure.
Ayers Can Help You Find a Solution.
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