The TPAR deadline is fast approaching, with all reports due by 28 August. If your business has paid contractors in industries like cleaning, IT, construction, or security, you may be required to submit a Taxable Payments Annual Report (TPAR) to the ATO.
The Taxable Payments Annual Report (TPAR) is a reporting obligation that applies to businesses in certain industries that engage contractors. If your business is one of them, you must submit your report to the ATO by 28 August each year.
The TPAR helps the ATO identify and address underreporting of income by contractors. If your business hires contractors to provide services, this report ensures transparency and helps keep the tax system fair for everyone.
Let’s break down what the TPAR involves, who needs to lodge it, what data you need to report, and how you can stay on top of your compliance obligations ahead of the 28 August deadline.
What is the TPAR?
TPAR stands for Taxable Payments Annual Report. It’s used by the ATO to gather information about payments made to contractors in specific industries.
This obligation was first introduced in the building and construction industry but has since expanded to include several other service sectors. The report is used to cross-reference the income reported by contractors on their tax returns.
Your business must lodge a TPAR if it:
- Operates in one of the relevant industries
- Pays contractors to perform services
- Has an Australian Business Number (ABN)
Not submitting a TPAR on time or providing incomplete data can result in penalties from the ATO.
Who Needs to Lodge a TPAR?
You must lodge a TPAR if your business provides services in the following sectors and has paid contractors during the financial year:
Industries that fall under TPAR requirements
- Building and construction services
- Cleaning services
- Courier and road freight services
- Information technology (IT) services
- Security, investigation, or surveillance services
- Mixed services involving any of the above
If your business only provides goods and does not pay contractors for services, you are not required to lodge a TPAR.
Even if you are unsure whether your services qualify, it’s best to seek professional advice to avoid missing a reporting obligation.
What Information Must Be Reported?
If you’re required to lodge a TPAR, you need to report the following information for each contractor:
- ABN (Australian Business Number)
- Contractor’s name (individual or business)
- Address
- Total amount paid for the financial year
- Total GST paid (if applicable)
Make sure to exclude:
- Payments for materials only
- Incidental labour where no service was performed
- Payments made to employees
- Payments to labour-hire firms (unless required by ATO)
The ATO uses this information to ensure that contractors are declaring their full income, so accuracy is essential.
When Is the TPAR Due?
The TPAR is due on 28 August each year. This means you must lodge your report for payments made during the financial year that ended on 30 June.
There are no extensions for this deadline, and penalties apply for late or missed lodgements.
To avoid last-minute stress, businesses should begin preparing the necessary information well in advance. Using bookkeeping software like Xero can help you track contractor payments and generate TPAR reports automatically.
How to Lodge Your TPAR
There are a few methods you can use to submit your TPAR:
- Online Services for Business – Lodgement via the ATO’s business portal
- Accounting Software – Most cloud software has built-in TPAR functionality
- Registered Tax or BAS Agent – Your accountant or bookkeeper can lodge on your behalf
If you’re unsure how to generate or lodge your TPAR, now is a good time to reach out to your accountant. The team at Cotchy are here to help! It’s best not to leave this task until the last minute.
What Happens If You Don’t Lodge?
Failure to lodge your TPAR on time or at all can lead to:
- Penalties (for small businesses). These increase with time
- ATO compliance activity and audit risk
- Potential reputational damage if found non-compliant
Even if you think you might not need to lodge a TPAR, it’s worth checking your obligations each year. Some businesses may unintentionally fall into a reportable category due to the type of services they offer or receive.
Tips for Staying Compliant with TPAR Obligations
1. Review your contractor payments early
Don’t wait until August. Review payments made to contractors as you go and keep accurate records.
2. Use accounting software with TPAR functionality
Bookkeeping tools like Xero can make it easier to compile the data needed for the report.
3. Educate your team
Make sure whoever manages your books or payroll understands what the TPAR is and why it’s important.
4. Get professional help
If you’re unsure about your obligations or how to lodge, speak with a qualified tax advisor or accountant. The team at Cotchy are here to help!
Who Is Exempt from Lodging?
Your business is exempt from TPAR if:
- You don’t operate in one of the designated industries
- You didn’t pay contractors for services during the year
- You only paid contractors for goods, not services
- All work was done by employees rather than contractors
If you believe you’re exempt but receive a reminder from the ATO, don’t ignore it. Instead, submit a Non-Lodgment Advice form to explain why you’re not required to lodge a TPAR.
What to Do Now to Meet the 28 August TPAR Deadline
As the 28 August deadline approaches, now is the time to:
- Review your accounts
- Identify any reportable payments
- Ensure you have contractor ABNs and payment details
- Check your software for TPAR reporting options
- Consult with your tax advisor to avoid missing the deadline
Meeting this annual obligation doesn’t have to be difficult—especially if you’re organised and supported by the right professionals.
Need Help Meeting the TPAR Deadline?
Get Support from Cotchy
If you’re unsure whether your business needs to lodge a TPAR, or need help preparing the report correctly, Cotchy can help. We’ll review your business operations, identify whether you fall under TPAR obligations, and assist in lodging your report on time.
Avoid the penalties, reduce stress, and stay compliant—contact our team today for personalised advice.
TPAR Deadline Support is Just a Call Away
The TPAR deadline doesn’t need to catch you off guard. Whether you’re in building, cleaning, IT, or transport, our Cotchy team can help you meet your reporting requirements and stay on the ATO’s good side.
If you want peace of mind before 28 August, let’s chat about your obligations under the TPAR deadline. Click here to: Book a chat.
Frequently Asked Questions
Q. What is the TPAR?
A. The Taxable Payments Annual Report (TPAR) is a report that certain businesses must lodge with the ATO, detailing payments made to contractors for services.
Q. Who must lodge a TPAR?
A. Businesses that pay contractors in industries like cleaning, building, courier, road freight, security, investigation, surveillance, and IT services must lodge a TPAR.
Q. When is the TPAR due?
A. The TPAR deadline is 28 August each year. Late lodgement may result in penalties.
Q. What contractor information is required?
A. You must report each contractor’s ABN, name, address, total amount paid, and total GST paid during the financial year.
Source: Australian Taxation Office