What are Fruit and Vegetables?
Fruit and Vegetables, for the RPS, means fresh fruit and vegetables (including parts of fruit and
vegetables) intended for human consumption and includes sweet corn, nuts, herbs, sprouts, and fungi.
Dried fruit and vegetables, where they have been purchased from a grower, are also included.
Fruit and Vegetables are still covered by the RPS even though they have been:
 cut, chopped, peeled waxed
 stored under controlled atmospheric conditions (such as in a coolstore)
 treated to have the effect of stimulating, hastening, delaying or simulating ripening
 packaged or wrapped (with or without other kinds of fruit or vegetables).
Cereals, grains, oilseeds and processed fruit and vegetables are not covered by the RPS.
Processed fruit and vegetables include those that have been canned, bottled, frozen, cooked, pickled
or roasted as well as juices or beverages.
What do I have to do as a Payee?
Decide whether to quote your Tax File Number
You may choose to quote your Tax File Number (TFN) to your Payers. If you quote, no tax will be
deducted from your Reportable Payments.
To quote your TFN, fill in the Payee details on a Reportable Payments Declaration Form and give it
to your Payer. The TFN quoted must be the one under which the business is operated. For example, if
the business is operated as a partnership, the partnership TFN and name should be used.
You will need to provide a Declaration Form to each Payer you deal with. They must then complete
their details and send the form to the Tax Office.
If you operate your business as an individual and you receive an Australian Government pension or
benefit, you may be entitled to claim an exemption from quoting your TFN. More information is
available on the covering page of the Declaration Form.
Declaration Forms are available from your nearest
Tax Office or by phoning the RPS Information
Service on IBOO 625624 (8.SOam-5.OOpm [ST).
What happens if I choose not to quote my TFN or do not claim an exemption?
Your Payer will be required to deduct tax from your payment at the highest marginal rate plus
Medicare Levy (48.5%) and send it to the Tax Office.
Tax to be deducted is calculated on the gross amount before any deductions are made, for example,
for levies, freight, or commission. For an example of the calculation see page 10.
Credit for tax deducted will be available when you lodge your tax return. However, in special
circumstances, you may apply to the Tax Office for a refund of the tax deducted before you lodge
your tax return.
If any tax is deducted, your Payer must give you a receipt. You must keep the receipt to verify your
claim for credit.
Due to the phasing in period, no tax will be deducted from payments made before 1 July 1997. This is
to allow time for everyone to become familiar with the system and to ensure you are given the
opportunity to lodge your Reportable Payments Declaration Forms with all of your Payers.
How often do I have to complete a Declaration
Form?
You only need to give one completed Declaration
Form to each Payer you deal with, unless:
 it is more than 12 months since you received a payment from that Payer, or
 the Tax Office tells you or your Payer that the form is no longer valid.
What will the Tax Office do with the Declaration Form?
When the Tax Office receives your Declaration Form they will check that the TFN quoted and the
information provided are correct.
What if you do not have a TFN or do not know it?
If you want to quote your TFN, but you do not have one or you do not know it, you should fill in a Tax File Number Application/Enquiry Form. This is
available from your nearest Tax Office.
Lodge your Tax Return
The RPS does not change your obligation to lodge an income tax return. All the income you earn, including Reportable Payments, must be included in your
return.
You may wish to take this opportunity to review your records and ensure that you have lodged income tax returns, where necessary, and that your taxable
income in past years has been correctly stated.
Should you find any discrepancies with your tax returns you should contact your nearest Tax Office. Penalties will be lower if you make a voluntary
disclosure.
Privacy and your TFN
Your TFN is a private and sensitive piece of information. Payers can only use your TFN for authorised purposes as set out in the TFN Guidelines and tax
laws. Payers must keep TFNs in a secure place and ensure that access is limited only to those people who need to use them.
TFN Guidelines and more information are available from your nearest Tax Office or the Privacy Commissioner on 1800 023 985.
Examples
The following examples are designed to help you understand the operation of the RPS.
If, after reading this, you have any questions you should call the RPS Information Service on 1800 625 624 (8.3Oam - 5.OOpm EST). The
Translating and Interpreting Service (TIS) is available if required.
REPORTABLE PAYMENTS
These payments will be Reportable Payments if they are made by a Payer.
A greengrocer pays a grower $100 for fruit or vegetables.
A wholesaler pays a grower $1,000 for carrots.
A grower pays another grower for fruit or vegetables for resale.
PAYMENTS THAT ARE NOT REPORTABLE
These payments will not be Reportable Payments because the payments are not made by Payers.
A grower sells fruit or vegetables at the farm gate to members of the public.
A small fish and chip shop buys potatoes, tomatoes and lettuce from a grower.