Do You Need to Lodge a TPAR? Here Are the Signs to Watch For

If your business pays contractors to provide certain services on your behalf, you may be required to lodge a Taxable Payments Annual Report (TPAR). 

The TPAR is part of the Australian Taxation Office’s (ATO) efforts to ensure fairness in the business community by making sure all contractors report their income accurately. 

If you're unsure whether it applies to your business now is the time to check, the due date is 28 August each year, and penalties apply for late lodgement.

What Is a TPAR?

The TPAR is a report that businesses submit to the ATO outlining payments made to contractors during the financial year. It helps the ATO match income declared by contractors with the payments they received, reducing the risk of under-reported income and ensuring a level playing field for all.

You must report the contractor’s name, address, and ABN, as well as the total amount paid, including GST and any cash payments. This is the same information you would already be using to claim tax deductions or GST credits, so it should be readily available on the invoices you’ve received from contractors.

Does It Apply to Your Business?

You may need to lodge a TPAR if:

• Your business operates in one of the following industries:

  • Building and Construction

  • Cleaning Services

  • Courier or Road Freight

  • Information Technology (IT) Services

  • Security, Investigation or Surveillance Services

• You’ve hired contractors (not employees) to perform these services on your behalf.

For example:

• A cleaning company that outsources regular jobs to independent cleaners.

• A construction firm that pays sub-contractors to complete part of a project.

• An online store that hires a third-party courier to deliver packages.

Even if these services are not your core business activity, you may still be required to lodge a TPAR if you’ve paid contractors to perform them. That’s a common trap for businesses who assume that because, say, they’re a retail store and not a courier company, TPAR doesn’t apply but if they hire a courier to deliver goods to customers, that counts.

How to Lodge

Lodging your TPAR is straightforward and can be done online via:

• SBR-enabled software, or

• Online Services for Business (available via the ATO’s website).

You can also have your Registered Tax Agent lodge it for you. Just make sure the information is complete and accurate to avoid issues down the track.

Important Changes to Be Aware Of

The ATO will no longer accept paper TPAR lodgements after 28 August 2025. That means all businesses will need to transition to digital reporting by then. If you haven’t already, now’s a good time to check that your accounting software supports TPAR lodgement or speak to your accountant to get set up.

Need Help?

If you’re unsure whether your payments qualify or whether your business is required to report, contact our office for assistance. We can help you review your transactions, meet your obligations and avoid unnecessary penalties. 

Staying on top of TPAR requirements is just one more way to keep your business running smoothly and compliantly.

Disclaimer For External Distribution Purposes

The information contained in this publication is for general information purposes only, professional advice should be obtained before acting on any information contained herein. The receiver of this document accepts that this publication may only be distributed for the purposes previously stipulated and agreed upon at subscription. Neither the publishers nor the distributors can accept any responsibility for loss occasioned to any person as a result of action taken or refrained from in consequence of the contents of this publication.