The Taxable Payments Reporting System (‘TPRS’) has been expanded to the cleaning and courier services industries from 1 July 2018.
Businesses that have an ABN and make any payments to contractors for cleaning or courier services provided on behalf of the business must lodge a Taxable Payments Annual Report (‘TPAR’) each income year.
The first TPAR for payments made to contractors from 1 July 2018 to 30 June 2019 will be due by 28 August 2019.
Where cleaning or courier services are only part of the services provided by the business, they will need to work out what percentage of the payments they receive are for these services each income year to determine if a TPAR is required to be lodged.
Specifically, if the total payments the business receives for the relevant services are:
10% or more of their GST turnover – a TPAR must be lodged.
Less than 10% of their GST turnover – a TPAR is not required to be lodged, but the business can choose to lodge one.