ATO extends Taxable Payment Report System
The Taxable Payment Reporting System is an anti tax evasion program that first applied to the construction and building industry. It requires entities to report to the ATO payments they make to contractors & subcontractors. The ATO then uses this information for data matching to ensure contractors that received income in this industry are declaring it in their tax returns.
The Government has since extended this system from just construction and building industries to the courier & cleaning industry. From 1 July 2019 the government will further extend this program to road freight, security, investigation, surveillance & IT services industries.
We expect the government to roll this program out to further industries in the future. If you are in one of these industries and wish to seek advice on your reporting requirements please contact our team here at GMD.