TPAR is the Taxable payments annual report. It’s a yearly report to the ATO of payments your business made to contractors for certain services, and it’s due by 28 August each year. Businesses in building and construction, cleaning, courier and road freight, IT, and security, investigation or surveillance may need to lodge one.
It doesn’t usually create a tax bill, which is why it’s easy to forget. But a missed TPAR can attract a late lodgment penalty, and the data is used to check that contractors declare their income.
Below we explain who must lodge, the 50% and 10% tests, what to report for each contractor, a worked example, and how to lodge now that paper forms are no longer accepted.
Key takeaways
- A TPAR is due by 28 August each year, covering payments made from 1 July to 30 June.
- Building and construction businesses use a 50% “primarily” test. Other covered services use a 10% of business income test.
- Courier and road freight income is combined when you apply the 10% test.
- Report gross payments including GST, in whole dollars. Don’t report employee wages or unpaid invoices.
- Paper TPARs are no longer accepted after 28 August 2025, so you must lodge online or through an agent.
Who must lodge a TPAR?
According to the ATO’s guide to working out if you need to lodge, a TPAR may be required if your business provides one of these services and pays contractors or subcontractors to deliver them:
| Service | Test that applies | Lodge a TPAR when |
|---|---|---|
| Building and construction | Primarily in the industry: 50% or more of business income or activity this year, or 50% or more of income last year | You pay contractors for building and construction services |
| Cleaning | 10% or more of business income | You pay contractors for cleaning services |
| Courier and road freight | 10% or more of business income, with courier and road freight income combined | You pay contractors for courier or road freight services |
| Information technology | 10% or more of business income | You pay contractors for IT services |
| Security, investigation or surveillance | 10% or more of business income | You pay contractors for those services |
The building and construction rules treat you as primarily in the industry if any of the 50% tests are met. The 10% test doesn’t apply to building and construction.
Some government entities also report certain payments and grants to ABN holders. If you don’t need to lodge for a year, you can submit a TPAR non-lodgment advice instead.
What payments go in a TPAR?
The ATO’s list of payments to report says to include payments to contractors and subcontractors for the covered services. If an invoice includes both labour and materials, report the total payment.
You don’t need to report:
- payments for materials only, or incidental labour
- invoices still unpaid at 30 June. Only report payments made on or before 30 June
- payments to employees, which go through Single Touch Payroll or the PAYG withholding annual report
- workers engaged under a labour-hire arrangement
- payments for private or domestic work, such as a homeowner renovating their own home
What details do you report for each contractor?
| Field | What to enter |
|---|---|
| ABN | The contractor’s ABN, if known. If it changed during the year, include each ABN |
| Name | Business name or individual’s name |
| Address | The contractor’s address |
| Gross amount paid | Total for the year including GST and any tax withheld, in whole dollars |
| GST | Total GST you paid them |
| Tax withheld | Total withheld where an ABN was not quoted |
These fields come from the ATO’s TPAR contractor details page. If a contractor doesn’t quote an ABN and you withhold tax, report the amounts withheld in either your TPAR or the PAYG payment summary for withholding where ABN not quoted, but not both.
Tip
Check contractor ABNs against ABN Lookup when you set up each supplier. A wrong ABN or duplicate supplier record can split one contractor’s total and create a mismatch. Our ATO data-matching guide explains why that matters.
Worked example: does a courier business need to lodge a TPAR?
The facts
A hypothetical Perth delivery business has $200,000 of business income in 2025-26. It also pays one subcontractor driver $11,000 during the year ($10,000 plus $1,000 GST). The driver quoted an ABN, so nothing was withheld. Its own employee drivers earned $80,000 in wages.
The ATO formula is: payments received for the service ÷ business income × 100.
Scenario 1: courier income of $30,000
- $30,000 ÷ $200,000 × 100 = 15%
- 15% is 10% or more, and contractors were paid for courier work, so a TPAR is required.
- The subcontractor line shows gross paid $11,000, GST $1,000 and tax withheld $0.
- The $80,000 of employee wages is not reported. It goes through Single Touch Payroll.
Scenario 2: courier income of $16,000
- $16,000 ÷ $200,000 × 100 = 8%
- 8% is under 10%, so the courier test doesn’t require a TPAR, as long as there’s no road freight income that pushes the combined total to 10% or more.
- If the business also earned $6,000 from road freight, combined income is $22,000. $22,000 ÷ $200,000 × 100 = 11%, so a TPAR would be required.
The same calculation works for cleaning, IT and security. A builder uses the 50% test instead. See the ATO steps for how to use projected income if you traded for less than a full year.
When is the TPAR due, and what if it’s late?
The ATO says the TPAR is due by 28 August each year. The 2025-26 report, covering payments from 1 July 2025 to 30 June 2026, was due by 28 August 2026. The 2026-27 report will be due by 28 August 2027.
If your 2025-26 TPAR is still outstanding, lodge it as soon as possible. Late lodgment can attract a failure to lodge on time penalty. If the ATO contacts you about a missing TPAR and you didn’t need to lodge, submit a non-lodgment advice.
Watch out
TPAR paper lodgments are no longer accepted after 28 August 2025. If you’ve always posted a paper form, set up an online method well before the next deadline.
How do you lodge a TPAR online?
Sole traders and businesses can lodge using:
- SBR-enabled business software, or a TPAR data file lodged through Online services for business
- Online services for business (Lodgments, then Taxable payments annual reporting)
- Online services for individuals and sole traders (Tax, Lodgments, then Taxable payments annual report)
- a registered tax agent or BAS agent
Both online services let you save a draft and come back to it, and keep your lodgment receipt in the History section. Our bookkeeping service can keep your supplier file clean through the year so the TPAR is a quick job in August.
What are the most common TPAR mistakes?
- Using the 10% test for a builder. Building and construction uses the 50% primarily test.
- Forgetting to combine courier and road freight income when testing the 10% threshold.
- Reporting employee wages. Our employee vs contractor guide can help you sort workers correctly.
- Leaving out GST. Report the gross amount including GST.
- Including unpaid invoices. Only payments made by 30 June count.
- Reporting no-ABN withholding twice. Report it in the TPAR or the separate annual report, not both.
Check that contractor totals agree with your bank records and your BAS and GST figures before you lodge. If you run a trade business, our accountants for tradies page covers the wider picture, and sole traders can read our guide to sole trader tax obligations.
FAQ about TPAR
What is a TPAR?
A TPAR, or Taxable payments annual report, is a yearly report to the ATO of payments a business made to contractors for certain services, such as building and construction, cleaning, courier, road freight, IT and security.
When is the TPAR due?
The TPAR is due by 28 August each year. It covers payments made from 1 July to 30 June of the previous financial year.
Do sole traders need to lodge a TPAR?
Yes, if the sole trader provides a covered service, meets the relevant test and pays contractors to deliver that service. Business structure does not change the answer.
Can I still lodge a paper TPAR?
No. Paper TPAR lodgments are no longer accepted after 28 August 2025. Lodge through business software, ATO online services or a registered tax or BAS agent.
Do I report payments to employees in a TPAR?
No. Payments to employees are reported through Single Touch Payroll or the PAYG withholding annual report, not the TPAR.
Talk to specialist before it costs you
15-minute discovery call. No obligation, no jargon.
Talk to a registered tax agent
Need your TPAR prepared, or not sure if you need to lodge one? Speak with a registered tax agent at Nanak Accountants & Associates on 1300 626 258, or book a consultation with our team. We look after BAS, GST and contractor reporting for businesses across Australia.
This article is general information only and is not personal financial or tax advice. Information checked against ATO sources on 8 November 2026.
