What is the Taxable Payments Annual Report (TPAR)?

If you pay contractors in certain industries — building and construction, cleaning, courier or road-freight, IT, security or investigation, or government department work — the ATO requires you to lodge a Taxable Payments Annual Report (TPAR) every year. It's a separate report from your BAS or company tax return, due by 28 August, and missing it triggers automatic penalties of up to $313 per 28 days late.

What is the Taxable Payments Annual Report (TPAR)?

Why does TPAR exist?

TPAR exists to combat cash-in-hand contracting and under-reported contractor income. The ATO uses TPAR data to cross-check whether contractors reported the income their clients said they paid them. Industries with historically high cash-economy activity were chosen for mandatory reporting, with new industries added each year as the program expands.

Graham Yuan

Managing Director

ABS Solutions

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Who has to lodge a TPAR?

If 10% or more of your business income comes from a TPAR-reportable industry AND you have paid contractors during that financial year, you must lodge. Government entities lodge TPAR for ALL contractor payments regardless of the 10% rule. Sole traders, partnerships, trusts and companies are all in scope.

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Contractor's ABN, name and business address
Total amount paid to that contractor during the financial year (GST inclusive)
Total GST included in those payments
Total payments made to each individual contractor — not lumped
Excluded: payments to employees (covered by STP), payments for materials only, payments under $75 GST-inclusive

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