TPAR made simple: What it is and why it matters
What’s TPAR and Why Should You Care? (Hint: It’s Due Soon!)
If you’re a small business owner in Australia, especially in industries like building, cleaning, courier, security or IT - chances are you’ve heard the term TPAR thrown around. But what actually is it, and do you need to worry about it? Let’s break it down in plain English.
What Is TPAR?
TPAR stands for Taxable Payments Annual Report. It's the ATO’s way of making sure payments made to contractors are being tracked properly. If you hire subcontractors or sole traders to help with your business - and you pay them for services, you may need to report those payments.
Think of it as the ATO’s version of saying, “Hey, just let us know who you paid and how much, so we can keep things fair.”
Who Needs to Lodge It?
You’ll likely need to lodge a TPAR if you're in one of these industries:
Building and construction
Cleaning services
Courier or delivery services
Security or investigation services
Road freight
IT services
Mixed services (you provide a mix that includes any of the above)
If that sounds like you, and you’ve paid contractors during the financial year (not employees, just contractors), then yes - this applies to you.
What’s in the Report?
You’ll need to report:
The contractor’s ABN
Name and address
Total payments made to them (including GST)
It’s all about transparency - so the ATO knows those contractors are doing the right thing on their end too.
When Is It Due?
The TPAR deadline is 28 August
Yep, it’s coming up fast - so now’s the time to get things in order if you haven’t already.
Can a Bookkeeper Help?
Absolutely. A registered BAS agent bookkeeper can take this off your plate - checking through your payments, preparing the report and lodging it with the ATO on your behalf.
If you're not sure if you need to lodge, or you’re looking at your books with that familiar “what even is this?” look on your face - a bookkeeper can walk you through it and make sure you stay compliant (and avoid any fines).
If you need advice or assistance, get in touch today, and follow us for more tips.
Disclaimer
This information is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided in relation to your own circumstances.
