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  • Entering a Contractor Payee and generating the Taxable Payments Annual Report (Australia only)




BankLink Practice, Australia only

To comply with the ATO reporting requirements, businesses in the building and construction industry that engage the services of contractors are required to report on the total payments made to contractors.

MYOB Banklink Practice (version 5.24 or later) is able to:

  • store Contractor Payees
  • process payments to contractors, and
  • produce the annual Taxable Payments Annual Report (TPAR) required by the Australian Taxation Office (ATO).

First, you need to set up your Contractor Payees so that these payees can be used when coding transactions.  At the end of the period in BankLink Practice, you can generate the Taxable Payments Reports that will show both the payments to contractors and the amount of tax withheld for contractors with no Australian Business Number (ABN).  This will provide you with the information required to submit the TPAR to the ATO.


Setting up a Contractor Payee
  1. Open the client file within BankLink Practice.
  2. Select Other Functions > Payees. The Maintain Payee List window appears.
  3. Click New. The Add New Payee window opens.
  4. Enter the Payee details.
  5. Select the option Contractor Payee.
  6. Complete the following mandatory fields:
    • Address
    • Town
    • State
    • Post Code
    • Phone Number
  7. Assign a Chart of Account Code to the Contractor Payee.
  8. The Narration field automatically defaults to the Payee Name.  If required, click in this field to change the default.
  9. If required, assign a dissection to this Payee permitting different Chart of Account codes to appear when processing payments to this payee.
  10. Click OK. The Contractor Payee is created.
Generating a Taxable Payments Report
  1. Open the client file within BankLink Practice.
  2. Select Reports > Taxable Payments Report.
  3. Select either a Detailed or Summarised report.
    • Detailed Report: Displays a complete list of entries coded for the period.
    • Summarised Report:  Displays the total payments made to each contractor.
  4. Enter the date range to report on.
  5. Select from the following options to produce the report:
    • Preview:  Displays the report on the screen.
    • File:  Saves the report in CSV, TXT, XLS or PDF file formats.
    • Add:  Saves the report to your list of Favorite Reports.
    • Print:  Sends the report to your default printer.
    • Cancel:  Exits the report.


What about Contractor Payees with no ABN?

Any contractor that has no ABN, i.e. where tax has been withheld from their payment, will need to appear correctly on the Taxable Payments Report.

To ensure this is correctly and accurately reported, the contractor payee must be set to calculate 46.5% No ABN Withholding Tax on the net amount. In addition to this, when a contractor payee does not have an ABN, the contractor payer cannot claim the GST input tax credit, so no GST is calculated.