Transport Traders is a business that has an ABN and supplies road freight services.
To transport bulk goods and deliver parcels for clients, Transport Traders uses contractors in the road freight parts of its business.
In the financial year, Transport Traders works out its current GST turnover is $6.6 million, comprising of:
- Amounts received for road freight services = $6.4 million
- Amounts received from consulting services = $200,000.
Transport Traders traded for the full financial year. For this reason, they can use their current GST turnover to work out if they need to lodge a TPAR.
Are consulting services a road freight activity?
- Yes
- No
Work out if Transport Traders need to lodge a TPAR by identifying if 10% or more of their business income for the financial year is from road freight services. The formula to use to work this out is:
Payments for road freight services ÷ current GST turnover × 100 = %
Does Transport Traders need to lodge a TPAR?
- Yes
- No
