Guide to lodging your TPAR.
Its TPAR time of year - due 28th August!
You may need to report the payments you make to contractors by lodging a Taxable Annual Payments Report (TPAR).
TPAR applies if you pay contractors and you provide business services in any of the below industries:
building and construction
courier
cleaning
information technology (IT)
road freight
Is this you? If so, you have the below options :)
Option 1 - Fenwick will TPAR for you!
Reach out to your team of advisors at Fenwick Collective and we can prepare your TPAR for you. We will quote ASAP and ensure everything is lodged on time to the ATO for you.
If we've previously prepared TPAR for you then don't stress - we will do the same this year! Also, if you are an existing building and construction client (i.e. QBCC client of ours) we also have you covered and we will be reaching out personally to offer this service - so keep your eyes peeled for this email.
Option 2 - You can lodge this yourself using our TPAR FAQ Guide below
What is TPAR?
TPAR is an annual report you lodge to the ATO to confirm how much in total you've paid to contractors in the previous financial year. The ATO collects this information to ensure the contractors are also reporting this income on their personal tax returns and to improve data matching across businesses.
Is there anything I don't need to report?
There are some types of payments you make to contractors which you do not need to report on TPAR including:
payments for materials only
incidental labour
unpaid invoices after 30 June (only payments you made on or before 30 June each year need to be reported)
workers engaged under a labour hire or on-hire arrangement
pay as you go (PAYG) withholding payments (i.e. you do not need to report payments to employees, as these payments go through Single Touch Payroll (STP))
payments to foreign residents for work performed in Australia
foreign residents for work performed overseas
contractors who do not quote an Australian business number (ABN)
payments in consolidated groups
payments for private and domestic projects.
When do I need to lodge by?
The due date is 28th August.
How do I lodge my TPAR?
Before you can lodge your TPAR you will need to have records of the below for each of your contractor's:
Name
Address
Australian business number (ABN)
Amount you paid to the contractor in the period 1 July 2024 to 30 June 2025, including goods and services tax (GST)
Next you should check if your accounting software can prepare and lodge the TPAR for you - E.g! If you set this up in Xero you can lodge directly to the ATO straight from here based on having the above details saved under a contact group created in Xero!
If you're not using Xero and still need to lodge TPAR you can also use the ATO's Online Services for business: click here to view.
You will need your ABN and to set up your RAM: click here to view.
Once logged into the business portal you then click on Lodgements and Taxable payments annual reporting to get started.
If this all sounds a bit too hard - never fear as you can also lodge via a trusty paper form. This can be downloaded from the ATO website or you can reach out to us and we will send you a copy. Please note these are not going to be accepted anymore by the ATO after 28th August 2025 this year!