The TPAR, or Taxable payments annual report, is an ATO report of payments a business makes to contractors for building and construction, cleaning, courier and road freight, IT, and security, investigation or surveillance services. It's due by 28 August each year for the previous financial year. Paper TPARs aren't accepted any more, so you lodge it through business software, ATO online services or your tax or BAS agent.
The details below come from the ATO's TPAR pages, as of October 2026.
Who has to lodge a TPAR
You may need to lodge if your business provides one of the services in the taxable payments reporting system (TPRS) and pays contractors to deliver them. Contractors include subcontractors, consultants and independent contractors, whether they operate as sole traders, companies, partnerships or trusts. Some government entities also report grants paid to people or organisations with an ABN.
| TPRS service | Notes |
|---|---|
| Building and construction | No 10% test: if you provide these services and pay contractors for them, you report |
| Cleaning | 10% test applies |
| Courier and road freight | Combine both when doing the 10% test |
| Information technology (IT) | 10% test applies |
| Security, investigation or surveillance | 10% test applies |
The 10% test, step by step
If TPRS services are only part of what your business does, you work out whether they're a big enough share of your income. The test doesn't apply to building and construction.
- Add up all payments your business received for each relevant TPRS service in the financial year, including work done for you by employees, contractors or subcontractors.
- Work out your business income for the year. If you've traded for less than 12 months, use your projected income for a full year.
- Divide the payments for the service by your business income and multiply by 100.
- If the result is 10% or more, and you paid contractors for that service during the year, you must lodge. Under 10%, you don't.
What to report
For each contractor, report the total paid for the relevant service in whole dollars, with cents left out. Before you lodge, have these records for each one:
- Name.
- Address.
- ABN.
- Amount paid, including GST.
How to lodge
| You are | Ways to lodge |
|---|---|
| Sole trader or business | SBR-enabled business software, a TPAR data file through Online services for business, Online services for business or for individuals and sole traders, or your registered tax or BAS agent |
| Tax or BAS agent | SBR-enabled software, a data file, or Online services for agents |
| Government entity | SBR-enabled software, a data file, or Online services for business |
Online services for business needs an ABN, a Digital ID and Relationship Authorisation Manager (RAM). In it, choose Lodgments, then Taxable payments annual report. You can save a draft and come back to it, and see past lodgment dates and receipt IDs in the History section. If you don't need to lodge this year, submit a Non-lodgment advice. To fix contractor details after lodging, amend the lodged TPAR.
The timing detail contractors should know
Here's what most people miss: TPAR data now feeds contractors' own tax returns. From Tax Time 2026, amounts reported through TPAR are pre-filled in the returns of individuals in business who provide TPRS services.
The ATO says most TPAR data is only available after 28 August. A contractor who lodges in July or early August may not see it pre-filled, which can lead to omissions, amendments and repaying refunds later, so the ATO suggests lodging after 28 August. TPAR figures are reported on a cash basis too. If you report income on an accruals basis, your records may not match, and you can change the pre-filled amount using the Other reason code with Accruals in the text box.
A simple TPAR checklist
- Decide each year whether you're in scope: building and construction always, the other TPRS services only if they reach 10% of business income.
- If you run courier and road freight together, add the payments for both before doing the test.
- Record each contractor's name, address and ABN when you first engage them, not in August.
- Keep running totals of what you pay each contractor for the service, including GST.
- Check whether your accounting software is SBR-enabled and can prepare the report for you.
- Lodge by 28 August, keep the receipt ID from the History section, and amend if a contractor's details turn out to be wrong.
- In a year you're out of scope, lodge a Non-lodgment advice so the ATO doesn't chase a missing report.
Government entities follow the same steps, and some of them also report grants paid to people or organisations with an ABN, using the same report and the same 28 August date.
Tax and BAS agents can see a client's outstanding TPARs in the For action screen or under Lodgments in Online services for agents, which makes it easy to check nothing has been missed before the deadline.
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Why the ATO collects it
The report helps the ATO find contractors who aren't meeting their tax obligations and make sure businesses aren't undercut by competitors who don't declare all their income. If you're a contractor in one of these industries, include all your income on your return, because the ATO will already have the figures. It sits alongside your other reporting, such as your BAS and Single Touch Payroll for employees.
The verdict
If your business is in building and construction and pays contractors, you lodge a TPAR. In the other TPRS industries, run the 10% test each year. Keep each contractor's name, address, ABN and GST-inclusive total as you go, lodge online by 28 August, and send a Non-lodgment advice in years you don't need to report.
Frequently asked questions
When is the TPAR due?
By 28 August each year, for payments made in the previous financial year.
Which businesses need to lodge a TPAR?
Businesses that provide building and construction, cleaning, courier, road freight, IT, or security, investigation or surveillance services and pay contractors to deliver them, subject to the 10% test outside building and construction.
Can I lodge a TPAR on paper?
No. Paper lodgments aren't accepted after 28 August 2025. Lodge through business software, ATO online services or a registered agent.
What details do I report for each contractor?
Their name, address, ABN and the total amount paid, including GST, in whole dollars.
What if I don't need to lodge a TPAR this year?
Submit a TPAR Non-lodgment advice form.
