What's the Taxable Payable Annual Report (TPAR)?

It’s important for business owners to know their reporting obligations. One important thing to report to the ATO is the payments you make to contractors (TPAR). In this guide, we’ll explore the basics around TPAR, including what it is, whether you need to lodge a TPAR, the due date, how to do it, exemptions and more. ​

TPAR is short for Taxable Payments Annual Report, it is a report that businesses in certain industries need to submit to the ATO. If you’re running a business and pay contractors such as builders, cleaners, IT consultants, you might need to submit this report - it’s a way for the ATO to keep track of payments made to contractors so the ATO can ensure everyone is paying the right amount of tax. ​

Not all businesses need to lodge a TPAR, but you might need to lodge one if:​

It’s important to note that these ‘relevant services’ are:​

If you don't meet the 10% threshold, you may still need to lodge a TPAR if you are in the building and construction industry and 50% or more of your business income is earned from providing building and construction services.​

If you’re unsure if you need to lodge a TPAR, it’s best to consult with your accountant or head to the ATO’s website to find out more information. ​

TPAR is due on 28th of August each year. It’s essential to lodge in time to avoid penalties. Non-compliance can lead to penalties, with fines ranging from $1,375 for smaller entities to $2,750 or more for larger entities. If you fail to provide the correct information or maintain proper records, you may be subjected to penalties too.​

Head to the ATO’s website for more information on overdue TPAR.​

When you’re preparing to lodge a TPAR, you need to include the following information for each contractor you paid during the financial year: ​

The report only includes the amounts paid to a contractor.  If there are amounts not yet paid, these amounts will be included in the following year’s report once after payment.​

There are several options for you to lodge a TPAR: you can lodge it online through the ATO's Business Portal, through your registered tax (e.g. Beany) or BAS agent, via a SBR-enabled software, or even by mailing in a paper form (NAT 74109 form). Before lodging, remember to double check to ensure your report is accurate and contains all the required info like contractor details, payment amounts, and the type of services they provided. ​

While many industries are required to lodge a TPAR, there are certain exemptions that don’t apply to. You don’t need to report payments to contractors if: ​

There might be other additional exemptions applicable to your situation. It's always best to seek professional advice for clarification.​

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