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Do You Need to Lodge a TPAR? Here’s What You Should Know
By Rashika Dahal
15 July 2025
If your business engages contractors, you might be required to lodge a Taxable Payments Annual Report (TPAR) with the Australian Taxation Office (ATO).
The TPAR helps the ATO ensure that contractors are correctly reporting their income and meeting their tax obligations. It applies to businesses in specific industries, especially if a significant portion of their income comes from contractor services.
Who Needs to Lodge a TPAR?
You must lodge a TPAR if your business:
1. Operates in a Relevant Industry:
The TPAR applies to businesses in the following sectors:
- Building and construction
- Cleaning services
- Courier services
- Road freight services
- Information technology (IT) services
- Security, investigation, or surveillance services
2. Meets the Income Threshold:
If 10% or more of your income is from contractor services, you are required to report.
Note: For businesses in building and construction, the threshold is 50% or more.
3. Makes Payments to Contractors:
You must report payments made to:
- Sole traders
- Companies
- Partnerships
- Trusts
These contractors may include subcontractors, consultants, and other independent service providers.
What Information Do You Need to Report?
For each contractor, you must include:
- Contractor’s name and address
- Australian Business Number (ABN)
- Total amount paid during the year (including GST)
How and When to Lodge
Lodgement Deadline:
All TPARs must be lodged with the ATO by 28 August each year.
Lodgement Methods:
You can lodge your TPAR:
- Online via myGov linked to the ATO
- Through TPAR-enabled accounting software
- Via a registered tax or BAS agent
If your business meets the industry and income thresholds but did not pay any contractors during the year, you must submit a Non-Lodgement Advice Form to notify the ATO.
Need Help Determining If Your Business Needs to Lodge a TPAR?
Understanding your TPAR obligations can be tricky. If you’re unsure whether your business qualifies, it’s wise to seek professional advice early—well before the August deadline.
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