Business basics · AU

TPAR (Taxable Payments Annual Report)

The annual report of what you paid contractors in certain industries.

A Taxable Payments Annual Report (TPAR) tells the ATO what your business paid to contractors during the financial year, and is required for businesses in building and construction, cleaning, courier and road freight, IT and security, investigation or surveillance services. For each contractor you report their ABN, name, address, the gross amount paid including GST, the GST, and any amount withheld. It is due by 28 August.

For building and construction the ATO applies a 50% test rather than an always-report rule: you lodge if you paid contractors for building and construction services and, in the current or previous year, 50% or more of your business income or activity came from those services. Phone numbers, email addresses and bank details are not columns on the report.

Worked example

A plumbing business paid three subcontractors $18,700, $9,350 and $4,400 including GST over the year. The TPAR lists each one with ABN and address, gross paid, the $1,700, $850 and $400 of GST, and $0 withheld — three rows, lodged by 28 August.

Common mistake

Reporting employees. The TPAR is for contractors only; employee wages are reported through Single Touch Payroll, and an ABN-holding worker who is actually an employee belongs there too.

Grounded in ATO — Taxable payments annual report guidance. Figures last checked . General information, not tax advice.

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