What you need to know about the Taxable Payments Annual Report

If your businesses made payments to contractors and subcontractors during the financial year, these payments must be reported in your Taxable Payments Annual Report (TPAR). The Report must be made by August 28 each year, so now’s the perfect time to get up to speed on what this actually means for your business. 


What you need to report. 


Contractors and subcontractors for this Report fall into a number of categories. You must report the following: 


  • Building and construction services. 
  • Cleaning services. 
  • Courier services. 
  • Road freight services. 
  • IT services. 
  • Security, investigation, and surveillance services. 


The information supplied must include the total payment amount if an invoice you receive from a contractor includes labour and materials. 


To help you track payments here, the ATO has a free reporting worksheet you can use. Simply download the PDF online and enter the details of payments to contractors for services. This sheet does not need to be submitted to the ATO — it’s for internal purposes only. However, you’ll need to refer back to it when it’s time to submit your TPAR. 


What you don’t need to report. 


Some payments aren’t required to be submitted in your TPAR. This includes: 


  • Payments for materials only. 
  • Incidental labour. 
  • Unpaid invoices after 30 June (only report payments you made on or before 30 June each year). 
  • Workers engaged under a labour-hire or on-hire arrangement. 
  • Pay as you go (PAYG) withholding payments (don’t report payments to employees. Report these payments through the PAYG withholding annual report or Single Touch Payroll). 
  • Payments to foreign residents for work performed in Australia. These are generally subject to PAYG foreign resident withholding. However, if the payments aren’t subject to PAYG withholding, then you need to report them in a TPAR. 
  • Foreign residents for work performed overseas. 
  • Contractors who do not provide an ABN — in this case, you may need to withhold an amount from the payment for that supply under the PAYG withholding arrangements 
  • Payments in consolidated groups. 
  • Payments for private and domestic projects. 


How to lodge your TPAR. 


Your Report can be lodged directly to the ATO online through specific software. Sole traders and businesses can use business software if its SBR-enabled software, or your business can create a TPAR data file to the required TPAR specifications. Simply lodge through Online services for business using the file transfer function. 


If you do not have business software, use online services for business. To use this service, you need an ABN and a secure credential myGovID and Relationship Authorisation Manager (RAM). Select Lodgments then Taxable Payments Annual Reporting. 


You can also use: 


We can help you with your TPAR. 


If you need guidance, get in touch with us before August 28, and Ascent Accounting can help lodge your business’s TPAR. Start the conversation here. 

Need help with your accounting?

Find Out What We Do

Why Every Business Sale Needs a Lawyer (and an Accountant)

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.

Understanding PAYG Instalments.

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.

Selling a Business? What You Need to Know About Goodwill, Plant & Equipment, and Stock

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?

8 Smart Upgrades to Boost Your Investment Property

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.

Why Public Liability Insurance is Essential for Your Business

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.

The Challenges & Costs of Exiting a Co-Ownership Property

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