If your business hires contractors or subcontractors, there’s a good chance you’ll need to report those payments to the ATO each year under the Taxable Payments Annual Reporting (TPAR) system.
So, what is TPAR and why does it matter?
The TPAR is designed by the ATO to keep tabs on payments made to contractors, helping to ensure income is reported correctly and tax obligations are met. If your business falls under a reportable industry, you’ll need to collect payment details and lodge the report by 28 August each year.
Does this apply to your business?
You’re likely required to lodge a TPAR if your business provides any of the following services:
- Building and construction
- Cleaning
- Courier or delivery services
- Road freight
- Information technology (IT)
- Security, investigation, or surveillance
If you’ve paid contractors for work in these areas during the financial year, reporting is mandatory.
What You Need to Do
(1) Keep clear records of all payments to contractors, including their ABN, name, address, and the total paid (including GST).
(2) Submit your TPAR by 28 August 2025, covering payments made in the 2024–25 financial year.
(3) Review your obligations regularly to ensure you stay compliant with ATO reporting requirements.
Final Word
Staying on top of TPAR requirements is essential if you work with contractors in a reportable industry. Ensure you’re aware of your responsibilities well in advance of the due date so you can lodge on time and avoid any penalties.
