TPRS Exemptions: Legislative Instrument
Legislative Instrument Taxable Payments Reporting System – Reporting Exemptions for Certain Entities Determination 2019 and Explanatory Statement (TPRS 2019/D1) regarding the de minimus exemption for entities required to lodge Taxable Payments Annual Reports (TPAR) under amendments enacted by the Sch 2 Treasury Laws Amendment (Black Economy Taskforce Measures No. 1) Act 2018 and Sch 2 Treasury Laws Amendment (Black Economy Taskforce Measures No. 2) Act 2018 have been issued for comment. Affected entities are:
- cleaners
- couriers or road freight service providers
- security, investigation or surveillance service providers, and
- IT service providers.
The legislative instrument when finalised will replace, in the same terms, the determination that was taken to have been made by the Commissioner on enactment of the new reporting provisions.
Comments are due by 15 April 2019, the final instrument is proposed to commence on 1 July 2019.
If you have questions on any of the above issues raised, please do not hesitate to contact us.
Kim Edwards
Chartered Tax Adviser
Chartered Accountant
T: 02 9984 7774
E: kime@northadvisory.com.au
About the author
Marius Fourie - Director & Business Advisor
As Director and Business Advisor, Marius uses his accounting expertise and empathetic skills to work directly with business owners and help them feel at ease with their finances.
Marius saw a common need in clients that just wasn’t being met by accounting providers.
That need was for clear, open communication and streamlined accounting services that didn’t come padded out with any unnecessary features.
Business owners just don’t have time to compare different accounting firms to see which one has the best packages with the best inclusions (many of which they would pay for but never use).
Key Takeaways
The reporting burden under TPRS has been relaxed for many mixed-activity businesses.
If the liable services are only a small portion of total income, businesses may now be exempt from lodging a Taxable Payments Annual Report.
The exemption applies across multiple service categories —
cleaning, courier/freight, IT, security/investigation — offering relief for firms providing those services only incidentally.
It’s a “per-period” exemption — businesses must reassess eligibility each reporting period.
If the volume/value of relevant services increases significantly, the exemption may not apply.
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Frequently Asked Questions
What is the legislative instrument about?
It’s the “Taxable Payments Reporting System – Reporting Exemptions for Certain Entities Determination 2019.” It sets out exemptions from TPRS reporting for entities supplying certain services (cleaning; courier/road freight; security, investigation or surveillance; IT services) — but only when those services are a small part of their overall business activity.
Who can qualify for an exemption under this instrument?
Businesses that supply the covered service types — cleaning, courier/road freight, security/investigation/surveillance, or IT services — but where the total consideration (i.e. income) from those services is below the relevant threshold under the “turnover-threshold test,” may qualify.
What does “turnover-threshold test” mean in this context?
It refers to a test under the instrument which measures the total consideration received by the business for relevant services during the reporting period. If the amount is below the defined threshold (i.e. small/de minimis compared to the rest of the business), the entity is exempt from TPRS reporting for that period.
When does the exemption regime take effect?
The instrument commenced on 1 July 2019. From that date, eligible entities may use the exemption rather than lodging a full annual TPRS report if they meet the criteria.
Does the exemption mean I never need to report for TPRS again?
Not necessarily — the exemption applies only if the relevant services (cleaning, courier, IT, security, freight) remain a minor part of your overall turnover. If that changes (e.g. those services grow substantially), the business will likely need to recommence reporting under TPRS.
What are the TPRS exemptions under the latest legislative instrument?
The TPRS (Taxable Payments Reporting System) exemptions under the legislative instrument clarify which businesses and payments don’t need to report under the TPRS. If I’m in a profession or pay for services that are specifically listed as exempt, I don’t have to include those payments in my TPRS reporting to the ATO — reducing compliance burden for certain industries and types of work
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