TPAR is a report that some businesses need to submit to the ATO each year. It declares payments a business makes for services provided by contractors.
Do I need to lodge a TPAR?
You might need to lodge a TPAR if you're in a specific industry and you pay contractors.
When you set up your business in Solo, the app checks if you are in an industry that may need to lodge a TPAR. If your industry may be required, you'll have the option in the app to report contractor payments in a TPAR and download it.
There are a few conditions that determine who needs to lodge a TPAR, so just to be sure, check the ATO guidelines on TPAR
Prepare your TPAR
You need to report the total payments you make to each applicable contractor each year. This doesn’t include payments for materials, but you should report any payments that include a service component.
For example, you would be required to report a transaction involving the purchase of paint alongside painting services.
Check the payments you need to report.
Include payments to contractors in TPAR
TPAR options only show if your industry may be required to report it. To change your industry in business settings, just go to More > Business and contact details > Business details.
Before you begin, make sure you have added the contractor's ABN and billing address to their record, as this is required by the ATO.
You can report contractor payments by including them in your TPAR when you record an expense or change it. In the expense, tap Include payments in TPAR.
Download and lodge TPAR
At the end of the financial year, you need to lodge a TPAR to declare all your taxable payments to the ATO. If you have any expenses that you still need to include, go back and change the expense to include TPAR.
To download your TPAR for the relevant year, go to More > Reports. Then follow the ATO's instructions to lodge your TPAR. The report allows you to lodge your TPAR using the online services for business.
If you want help to lodge your TPAR, talk to your tax agent.