How partial payments are handled by the Taxable Payments Report in RA Desktop range software

Legacy KB ID: 4871

Question

How will partial payments of bills from Building and Construction Industry suppliers be handled in the Taxable Payments Annual Report (TPAR)?

Answer

When you make a partial payment on a bill the Taxable Payments Annual Report will show only the amount paid.  If No ABN withholding is involved, then only the portion of withholding relating to the amount actually paid will be shown.  That is, the amount of the actual payment is “grossed up” to determine the total of payment plus withholding.

For instance, a $1,000.00 bill attracts a No ABN withholding of $465.00.  A payment of $200.00 is made on the bill for this TPAR reporting period.  The amount of withholding assigned will be $173.83.  It is calculated by:

200.00 / (1 – 0.465) = 373.83

373.83 – 200.00 = 173.83

When the remainder of the bill is paid in the next TPAR reporting period only the actual paid amount, plus any associated withholding, will be reported.

The payment of partially paid bills before 1/7/2023 will appear in the 2023/24 Taxable Payments Annual Report.