Tradies get your TPAR sorted, as penalties for overdue TPAR are incoming!

The ATO has indicated that starting from 22 March 2023 it will be imposing failure to lodge penalties on taxpayers who have not lodged a taxable payments annual report (TPAR) for the 2022 or prior years and they have received three non-lodgment letters.

The TPAR is due by 28 August each year and includes details of payments made to contractors operating in certain industries such as building and construction, cleaning and IT.

The failure to lodge penalty is based on the size of the entity and the length of time the lodgment is overdue. The maximum penalty is limited at 5 penalty units (or a multiple of the penalty unit amount). For small entities (assessable income or current GST turnover of less than $1 million) the limit would be $1,375. For medium entities (assessable income or current GST turnover of up to $20 million) the limit would be $2,750.

From the ATO website for more information below.

https://www.ato.gov.au/Tax-professionals/Newsroom/Lodgment-and-payment/Overdue-TPAR—penalties-may-apply/

https://www.ato.gov.au/General/Interest-and-penalties/Penalties/Failure-to-lodge-on-time-penalty/