Taxable payments annual report (TPAR)

Businesses and government entities who make payments to contractors may need to report these payments and lodge a Taxable payments annual report (TPAR).

Contractors can include subcontractors, consultants and independent contractors. They can operate as sole traders (individuals), companies, partnerships or trusts.

A TPAR must be lodged by 28 August each year.

You need to report payments made to contractors for providing the following services:
-Building and construction
-Courier
-Cleaning
-Information technology (IT)
-Road Freight
-Security, investigation or surveillance

If you work as a contractor providing any of these TPRS services, remember to include all your income on your tax return.

The TPAR allows the ATO to identify contractors who do not meet their tax obligations and to make sure businesses aren't disadvantaged by competitors who don't declare all their income.

Please remember, anytime you pay a contractor you need to document their name, address, ABN and amount you paid.

For all our bookkeeping clients, we have submitted your TPAR to the ATO for your business.