Businesses that use contractors may need to report these payments and lodge a Taxable payments annual report (TPAR).
If your business is in that camp, don’t forget the TPAR annual deadline is August 28.
Australian Taxation Office (ATO) assistant commissioner Tony Goding said "not reporting payments to contractors and deliberately under-reporting income" may raise suspicions with the ATO.
“The Taxable payments reporting system is just one tool in the ATO’s toolbelt helping expose missing income and keeping things fair for businesses doing the right thing,” he said.
“We use a range of information in the TPAR to check for red flags, like not including income, not lodging tax returns or activity statements, overclaiming GST credits or mis-using Australian business numbers.”