Specification / software developers / APRIL 2013 / UNCLASSIFIED
format / Audience / Date / Classification
Electronic reporting specification
Taxable payments annual report version 1.0.1
UNCLASSIFIED / For further information or questions, call 13 28 66
UNCLASSIFIED / PAGE 5 OF 40
UNCLASSIFIED / ELECTRONIC REPORTING SPECIFICATION – TAXABLE PAYMENTS ANNUAL REPORT
CHANGES IN THIS VERSION OF THE SPECIFICATION
Differences between version 1.0.0 and version 1.0.1
General key changes
§ Acronyms table has been updated.
§ All references to BAS agent portal for lodgment have been removed from this specification.
§ General wording changes to allow for consistency update and clarify information and processes. Changes have not been tracked in the marked up version of this specification, where the information intent remains unchanged.
§ Section 3 Reporting procedures:
– A new subsection ‘Test facility’ and associated information has been included in the specification.
– Subsection ‘Reporting electronically’ information has been updated.
§ Section 5 Record specifications:
– A new subsection ‘File name’ has been included in the specification.
§ Subsection ‘Description of terms used in data record specifications’ (page 11):
– As a result of several software developer queries additional information has been provided to clarify accepted characters in alphanumeric (AN) fields unless otherwise stated in this specification.
§ Subsection ‘Reporting of address details’ (page 17-18) has been updated for further clarity.
§ Section 10 More information has been updated.
Changes to data records, values and definitions
§ Supplier data record 1
– There is no change to Report specification version number field and associated data definition 6.9, it remains as FPAIVV01.0
ACRONYMS USED IN THIS SPECIFICATION
ABN / Australian business number
ATO / Australian Taxation Office
SILU / Software Industry Liaison Unit
DEFINITIONS
Common term / DefinitionPayee / For the purposes of this document, a payee is defined as a person who receives or is to receive a payment.
Payer / A payer is an entity that makes or will make a payment to a payee.
Supplier / The organisation sending the data to the ATO. The supplier may be the payer or a provider supplying data on behalf of the payer.
UNCLASSIFIED / ii
UNCLASSIFIED / ELECTRONIC REPORTING SPECIFICATION – TAXABLE PAYMENTS ANNUAL REPORT
Table of contents
1 Introduction 1
Who should use this specification 1
2 Legal requirements 2
Reporting obligations 2
Retention of information 2
Extension of time to lodge 2
Privacy 3
3 Reporting procedures 4
Reporting for the first time 4
Test facility 4
Accessing the test facility 5
Reporting electronically 5
Getting started 6
Backup of data 6
4 Data file format 7
File content 7
Sort order of the report data file 7
File structure example 8
5 Record specifications 9
File Name 9
CR, LF and EOF markers 9
Description of terms used in data record specifications 11
Supplier data record 1 13
Supplier data record 2 13
Supplier data record 3 14
Payer identity data record 15
Software data record 15
Payee data record 16
File total data record 16
6 Data field definitions and validation rules 17
Reporting of address details 17
Reporting of name fields 18
Currency for reporting 18
Field definitions and edit rules 19
7 Example of data file structure 28
Supplier data record 1 28
Supplier data record 2 29
Supplier data record 3 29
Payer identity data record 30
Software data record 30
Payee data record 31
File total data record 31
8 Algorithms 32
ABN algorithm 32
ABN Lookup 32
9 Reporting amendments 33
Reporting to the ATO 33
10 More information 34
Electronic specifications 34
Payer enquiries 34
Other enquiries 34
Software Developers Homepage 35
UNCLASSIFIED / vUNCLASSIFIED / ELECTRONIC REPORTING SPECIFICATION – TAXABLE PAYMENTS ANNUAL REPORT
1 Introduction
Who should use this specification
This specification is to be used in the development of software for the lodgment of electronic versions of the Taxable payments annual report for the 2012-13 financial year onwards.
To minimise reporting to the Australian Taxation Office (ATO), this specification also allows for withholding where Australian business number (ABN) not quoted payment data to be reported with the Taxable payments annual report data.
This annual report should not be used to report any other payments that are covered by PAYG
withholding, including payments made:
§ to employees
§ under voluntary agreements
§ under labour hire or on-hire arrangements
§ to foreign residents that are reported in the PAYG withholding annual report – payments to foreign residents
This specification is not intended to, nor does it provide a guide to the relevant legislation.
2 Legal requirements
Reporting obligations
Under Division 405 in Schedule 1 to the Taxation Administration Act 1953 (TAA), payers are required to report to the ATO details of payments made to payees as specified in the regulations. The regulations specify what payments are subject to reporting (supply), who is required to report (payer) and who will be reported on (payee).
The Taxable payments annual report must be provided to the Commissioner no later than 21 July after the end of the financial year. While this is an annual reporting obligation, during consultation some parties indicated a preference for more frequent reporting (such as quarterly). The ATO cannot accept more frequent reporting in the first year, however reports can be sent more frequently from the 2013-14 financial year onwards for those that wish to do so.
Where a payer is required to lodge a Taxable payments annual report they can also include amounts withheld from payments where a payee did not quote an ABN. Where these payments are included in a Taxable payments annual report, they must not be included in a PAYG withholding where ABN not quoted annual report.
The Commissioner has varied the reporting requirements to annual reporting (rather than quarterly) and to payments actually made.
Retention of information
Under taxation law, payers must keep payment information for a period of five years. The information can be kept electronically.
Where the information is kept electronically, a copy of the data file provided to the ATO must be able to be regenerated on request by the ATO (for example, where a problem has been encountered in processing the information).
Extension of time to lodge
If payers require additional time to lodge the annual report electronically, phone 13 28 66.
Privacy
The Privacy Act 1988 limits the collection, storage, use and disclosure of personal information about individuals by the ATO, other Commonwealth Government departments and agencies.
New private sector provisions in the Privacy Act also regulate the way many private sector organisations collect, use, secure and disclose personal information. The private sector provisions aim to give people greater control over the way information about them is handled in the private sector by requiring organisations to comply with ten national privacy principles. These principles give individuals the right to know what information an organisation holds about them and a right to correct that information if it is wrong.
The Privacy Commissioner’s Guidelines to the National Privacy Principles and other relevant information sheets are available at www.privacy.gov.au.
It is the responsibility of private sector organisations to obtain their own advice on the effect of privacy law, including the National Privacy Principles on their operations.
3 Reporting procedures
Reporting for the first time
Software developers developing reporting software for the electronic generation of Taxable payments annual reports should refer to this specification when developing their application. Information is also available on the Software Developers Homepage website at http://softwaredevelopers.ato.gov.au.
The Software Developers Homepage website is maintained by the ATO on behalf of, and in consultation with, the software development industry and business advisers. It facilitates the development and listing of software which may assist businesses to meet their tax obligations.
Commercial software developers are required to register on the Software Developers Homepage website if they wish to list their products. Developers who do not wish to list products do not need to register in order to access information. Subscribing for email updates is recommended so software developers can be notified of significant issues.
Test facility
A test facility is provided to software developers to self test the contents of test files. It is accessed using a user ID and password.
The test facility supports testing of files that comply with the latest versions of electronic reporting specifications. It cannot be used to make lodgments to the ATO.
The same validation process will be applied to files checked in the test facility and files that will be lodged via the ATO portals.
To test a file:
1 Prepare the files using software developed in accordance with the published reporting specifications.
2 Log in to the test facility using the user ID and password.
3 Select ‘Send data’ located in the left hand menu.
4 Select ‘Browse’ to locate the file and then select ‘OK’.
5 Select ‘Send’ to submit the file to the ATO, where it will be checked for format compatibility and data quality.
6 Select ‘Transaction history’ to confirm the file has been uploaded. This can be done while the file is being validated for errors and warnings.
7 When the validation is complete select ‘Download’ from the Transaction history screen to download the validation report confirming the data is in a valid format or detailing any errors found.
Accessing the test facility
To obtain a user ID and password for the test facility, complete the File transfer test facility registration form at http://softwaredevelopers.ato.gov.au/bulktest. The test facility can be accessed from the same location.
For support in the use of the test facility, including password reset:§ email , or
§ phone (02) 6216 4004 between 8.30am and 4.30pm, Monday to Friday AEDST.
Reporting electronically
Taxable payments annual reports cannot be sent to the ATO using the Electronic Commerce Interface (ECI) and should not be sent on electronic storage media.
Suppliers are able to lodge their Taxable payments annual report file electronically via the Business Portal or Tax Agent Portal where the data file has been prepared and stored locally.
On screen confirmation will be provided once the file has been sent. The ATO will perform data quality and format compatibility checks after the data file is sent. If the user selects the email acknowledgement option in the ‘Lodge file’ process, an email will be provided confirming that the files have been successfully lodged with the ATO. A validation report will be available in the portal to advise if the report was successfully validated or if there are any problems.
The security features of the portals address the most commonly held concerns over internet-based electronic dealings, namely:
§ authentication (the sender is who they say they are)
§ confidentiality (the communication can only be read by the intended recipient)
§ integrity (the transmission cannot be altered without detection while in transit), and
§ non-repudiation (there is a record of the transmission and content).
Getting started
Access to the portals requires:
§ an ABN – apply online at www.abr.gov.au, and
§ an AUSkey – register online at www.auskey.abr.gov.au.
AUSkey is an online security credential used to protect the client’s security and privacy when using ATO online services.
Every person associated with the business who wants to deal with the ATO online on behalf of that ABN will need an AUSkey. Users can have full or limited access to information, which can be changed anytime by using Access Manager in the portal.
The portals can be accessed from the Online services box in the right hand menu of the ATO website at www.ato.gov.au.
Backup of data
It is the responsibility of the payer to keep effective records as part of their tax reporting obligations. A backup copy of the data sent to the ATO should be kept by either the payer or the supplier, so that the report can be re-submitted if necessary.
4 Data file format
File content
Each file (dataset) must contain the three Supplier data records (page 13 and 14) that identify, among other things, the type of report, the contact name and the address of the supplier of the report.
The Supplier data records (page 13 and 14) must be the first three records on each data file. They must be reported once only and must be followed directly by the first Payer identity data record.
The first Payer identity data record (page 15) must appear as the fourth record on the data file and is to be followed by the Software data record.
The Software data record (page 15) contains the information about the software used to produce the report. It must immediately follow each Payer identity data record.
The Payee data record (page 16) contains the information about the payee and any payments made to them. The Payee data record(s) must immediately follow each Software data record.
The File total data record (page 16) must be the last record on the file (dataset) to indicate the end of the data. It contains the total number of records in the data file.
Only one File total data record may be present in each data file.Sort order of the report data file
The sort order of the report data file must be as follows:
§ the three Supplier data records
§ then the Payer identity data record for the first payer being reported
§ then the Software data record, and
§ then all Payee data records for that payer.
If there is another report from a different payer to be provided on the same file, then a Payer identity data record, Software data record and Payee data records for the next payer must follow the last Payee data record for the previous payer.
The File total data record must be placed at the end of the file.
File structure example
Supplier data record 2
Supplier data record 3
Payer identity data record
Software data record
Payee data record 1 (Taxable payments data)
Payee data record 2 (Taxable payments data)
Payee data record n (Taxable payments data)
Repeat the above structure – from Payer identity data record – for other payers being reported on the same file.