What is a TPAR?
TPAR (Taxable Payments Annual Report) is an annual report lodged with the ATO that details payments your business has made to contractors. The ATO uses this information to ensure contractors are correctly reporting their income.
Do I need to lodge a TPAR?
You may need to lodge a TPAR if your business pays contractors and operates in one of the following industries:
- Building and construction
- Cleaning services
- Courier services
- Road freight services
- Information technology (IT) services
- Security, investigation or surveillance services
Businesses in the building and construction industry generally need to report all contractor payments. For other industries, TPAR requirements depend on the nature and level of services provided.
Many short-term rental and holiday property management businesses engage contractors to provide cleaning services between guest stays. If your business earns income from cleaning services and pays cleaning contractors, you may be required to lodge a TPAR with the ATO.
What payments need to be reported?
Generally, payments made to contractors for reportable services must be included. For short-term rental managers, where a TPAR is required, businesses only report payments made to contractors who provide reportable cleaning services on their behalf. Payments made to other contractors not providing cleaning services are excluded.
Employee wages, payments for goods only, and private or domestic services are usually excluded.
What information is reported?
The TPAR typically includes:
- Contractor name and business details
- ABN
- Total payments made during the financial year
- GST included in those payments
When is a TPAR due?
TPAR lodgements are due with the ATO by 28 August each year for the previous financial year.
What happens if I don’t lodge?
Failure to lodge a required TPAR may result in ATO penalties and compliance action. It is your responsibility to determine whether your business is required to report.
How can I make TPAR reporting easier?
Maintaining good records throughout the year can significantly reduce the time and cost involved in preparing your TPAR. Recording contractors correctly in your accounting software and ensuring ABN details are up to date will make the lodgement process much simpler.
You can read our guide online here to help streamline this for your business – Preparing for your annual TPAR Lodgements
Can Wingr help with my TPAR?
Absolutely. We can help determine whether your business is required to lodge a TPAR, review your records, and prepare and lodge the report with the ATO on your behalf.
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