As we move through the new financial year, it’s a good time for businesses to review their reporting obligations with the Australian Taxation Office (ATO). One obligation that is often overlooked is the Taxable Payments Annual Report (TPAR).
If your business engages contractors in certain industries, you may be required to lodge a TPAR each year.
What is a TPAR?
A Taxable Payments Annual Report is used to report payments made to contractors for services during the financial year.
The ATO uses this information to help ensure contractors are correctly reporting their income and meeting their tax obligations.
The report includes details such as:
- Contractor names
- Business names
- ABNs
- Addresses
- Total payments made
- GST included in those payments
Who Needs to Lodge a TPAR?
You may need to lodge a TPAR if your business operates in any of the following industries:
Building and Construction
Businesses that pay contractors for building and construction services.
Cleaning Services
Businesses providing cleaning services and engaging contractors.
Courier and Road Freight Services
Businesses involved in courier transport or road freight activities.
Information Technology (IT) Services
Businesses that provide IT services and use contractors.
Security, Investigation and Surveillance Services
Businesses providing security-related services through contractors.
Mixed Businesses
Even if your business operates across multiple industries, you may still have a TPAR obligation if payments for one of the above services make up a significant part of your business activities.
What Payments Need to Be Reported?
Generally, you need to report payments made to contractors for services where an ABN was quoted.
This may include:
✅ Sole traders
✅ Partnerships
✅ Companies
✅ Trusts
Examples include:
- Subcontractors
- Freelance IT consultants
- Cleaning contractors
- Security contractors
- Trade subcontractors
You generally do not report:
- Payments to employees
- Payments for goods only
- Payments to suppliers where no service component exists
When is the TPAR Due?
The TPAR for the financial year ended 30 June 2026 is due to be lodged with the ATO by 28 August 2026.
If you believe your business has a TPAR obligation and have not yet started preparing the information, now is the time to begin gathering your contractor records.
How We Can Help
If you’re unsure whether your business needs to lodge a TPAR, we can review your circumstances and confirm your obligations.
We can also assist with preparing and lodging the TPAR on your behalf.
Unsure if TPAR Applies to You?
Many businesses are unaware they have a TPAR obligation until the ATO contacts them. A quick review now can help avoid penalties and ensure you remain compliant.
If you have engaged contractors during the year and operate in one of the industries listed above, please contact our team and we’ll be happy to help determine whether a TPAR is required.