Guidance for courier and cleaning industries reporting system
As of 1 July 2018, under this reporting system, businesses in the courier industry and the cleaning industry are required to report payments they make to contractors (individual and total for the year) to the ATO. The reporting system previously was only operational for the building and construction industry.
The draft ruling LCR 2018/D6 outlines how to work out if an entity comes within the reporting requirements and whether the exemption is available (where total amount of payments an entity receives for courier or cleaning services is less than 10% of the entity’s GST turnover).
The ATO also states its views on what is or is not regarded as a courier service or cleaning service, and illustrates its views in many examples.
Specific payments that do not need to be reported are payments for materials, unpaid invoices as at 30 June each year, PAYG withholding payments, payments within a consolidated group and payments made by individuals for private or domestic reasons.
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
Cayle Petritsch - Director & Wealth Advisor
Cayle Petritsch, Director and Wealth Advisor, works with our existing clients who have recognised the importance of business owners making strategic financial choices not only for their company, but for their personal finances too.
Cayle saw a great opportunity to expand North Advisory’s services into SMSF/superannuation, personal wealth management, asset protection services and other crucial personal finance facets that business owners need to consider.
His approach to wealth management allows you to receive highly personalised wealth advice. Working closely with Marius, Cayle understands the unique needs of every client, from their lifestyle and business goals to their retirement plans.
Key Takeaways
TPRS now covers courier and cleaning industries as of 1 July 2018.
This expansion means many businesses in these sectors must comply with annual reporting of contractor payments.
Lodging a Taxable Payments Annual Report (TPAR) is mandatory for most businesses in those sectors — unless a narrow exemption applies.
Non-compliance may carry penalties.
Reporting applies to virtually all forms of courier and cleaning —
across transport modes and types of cleaning services — unless clearly excluded (e.g. freight-only, materials only).
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Frequently Asked Questions
What is the Courier and Cleaning Industries Reporting System (under the broader Taxable Payments Reporting System — TPRS)?
It is the extension of the TPRS that requires businesses supplying courier or cleaning services to report payments made to contractors. From 1 July 2018, the reporting obligation applies to these industries, similar to prior obligations on the building and construction industry.
Who must lodge a report under this system?
Any business with an Australian Business Number (ABN) that provides courier or cleaning services, and pays contractors (sole traders, companies, partnerships or trusts) to perform those services, generally must lodge a Taxable Payments Annual Report (TPAR), unless an exemption applies.
What counts as a "courier service" or "cleaning service" for reporting purposes?
Courier services include pick-up and delivery of goods using various modes (van, car, motorbike, bicycle, foot, etc.), but exclude pure freight transport or passenger-transport services. Cleaning services cover building, residence, vehicle, industrial-machinery, event and other cleaning jobs — interior or exterior, including carpet, pool, and general cleaning.
Are there any payments that I don’t need to report under TPRS?
Yes. Payments for materials only (without labour), PAYG withholding payments to employees, payments within consolidated groups, and private/domestic payments are not reportable.
Is there any threshold or exemption for the reporting requirement?
Yes. A business may be exempt from lodging a TPAR if payments for courier or cleaning services represent less than 10% of its GST turnover (for non-construction industries).
Do businesses in the courier and cleaning industries need to report under the Taxable Payments Reporting System (TPRS)?
Yes — if I operate in the courier or cleaning industries and pay contractors for transport, courier or cleaning services, I generally need to report those payments to the ATO under the Taxable Payments Reporting System (TPRS), unless an exemption specifically applies to my situation. The guidance helps clarify which payments and service types are included so I report correctly.
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