Blog Layout

Does your small business need to lodge a contractor Taxable Payments Annual Report (TPAR)?

Apart from being a mouthful, what exactly is the taxable payments annual report (TPAR)? 

More importantly, how does it affect your small business?

What is the taxable payments annual report (TPAR)? 

Don’t stress - like many such requirements, it sounds more difficult than it needs to be. 


The report informs the Australian Taxation Office (ATO) of payments that you have made to service contractors. 

Those contractors can be: 


  • Sole traders
  • Companies
  • Trusts
  • Partnerships 


They include subcontractors and consultants. 


The purpose of the TPAR is to assist the ATO in identifying contractors who haven’t fulfilled their tax obligations. 

Who needs to lodge a TPAR?

From July 2019, the ATO extended the number of companies that need to lodge the TPAR report.


You may need to complete a TPAR if your business falls into one of the following categories:


  • Building and construction services
  • Cleaning services
  • Couriers
  • Road freight services
  • Information technology (IT) providers
  • Security, investigation or surveillance services
  • Government entities
  • Mixed services that supply one or more of the services listed above, e.g. retailers and franchisees, building maintenance firms, event managers and florists. 

What information do you need to report? 

The taxable payments annual report includes the following information:



  • The contractor’s name and address
  • The contractor’s ABN
  • The gross amount they were paid by you for the financial year, including any GST or tax withheld
  • Whether you received a statement from your supplier and details of any grants paid to people or organisations that have an ABN (this information only needs to be provided by government entities) 


Information not required in a TPAR 

In your TPAR, you do not need to detail:



  • Payments made for materials only
  • Payments for incidental labour (e.g., any labour costs when a supplier provides materials and a demonstration of how to install them)
  • Invoices unpaid at the end of the financial year
  • Payments for private and domestic services
  • Payments to other companies within a consolidated group that your business is part of 


When is your TPAR due at the ATO?

If you own one of the types of businesses listed above, your TPAR is due by 28th August every year.

Need expert guidance on preparing your TPAR?

Keeping up to date with these ongoing changes is just part of running a business in Perth these days. 


It’s another of the areas in which an experienced accountant becomes invaluable. 


As one of the leading accounting, superannuation, bookkeeping, tax, and business planning firms in Perth, we can guide you on preparing your TPAR. 


Please contact us at Ascent Accountants.



Need help with your accounting?

Find Out What We Do
April 14, 2025
Thinking of buying or selling a business in 2025? Now might be the perfect time to make your move. With interest rates tipped to drop, new regulations coming in 2026, and a surge in buyer activity, the opportunities are out there. Click the link to learn more.
April 14, 2025
If you're running a business or earning investment income, you’ve likely come across the term PAYG instalments — but many people still aren’t clear on what they are, how they work, or why they’re even in the system in the first place. We’ve got you.
April 14, 2025
Thinking of selling your business? Buyers are looking at three key components: Goodwill, Plant & Equipment and Stock. Did you know they impact how much tax you’ll pay?
April 14, 2025
From adding a bedroom to updating flooring or a kitchen refresh, smart changes can boost rental income and capital value. Learn more in our latest article.
March 14, 2025
If your business interacts with the public — whether through customers, suppliers, events, or onsite work — public liability insurance can protect you against claims for injury or property damage. This generally covers legal costs and compensation, and although it’s not legally required, being sued for negligence can be costly (and bad for your business rep), so it’s highly recommended.
March 14, 2025
Co-owning a property can be a practical and financially beneficial arrangement, but when circumstances change, sometimes one party needs to jump ship. Whether due to financial strain, health issues, relocation, relationship breakdown, or differing property goals, it’s not uncommon for one co-owner to buy out the other. While this process may seem straightforward, there are several financial and legal considerations to consider.
More Posts
Share by: