Do I need to lodge a TPAR?

The Taxable Payments Reporting system (TPRS) is set up for businesses to make sure contractors working for them report all of their income. Businesses 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.

Which industries does this effect:

• Building and construction services
• Cleaning services
• Courier or road freight services
• Information Technology services
• Security, Investigation and Surveillance services

A TPAR must be lodged by 28 August each year. Ensure you record the right information for each contractor. This should include:

• Their name
• Address
• ABN
• Amount Paid for the year including goods and services tax (GST)

If you are a contractor, you should know that the reportable payments you receive will be reported to the ATO. Make sure you report accurately.

If TPRS services are only part of the services your business provides, you need to work out what percentage of the payments you receive are for TPRS services each financial year. You do this to determine if you need to lodge a TPAR.

If the total payments you receive for TPRS services are:

• 10% or more of your business income: you must lodge a TPAR
• less than 10% of your business income: you do not need to lodge a TPAR.

This does not apply to building and construction services you provide. If you are running a business primarily in the building and construction industry, you must lodge a TPAR if you:

• make payments to contractors or subcontractors for building and construction services
• have an Australian business number (ABN).

If you do not need to lodge a TPAR, you will need to submit a TPAR Non-lodgment advice form

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Date published 10 Aug 2022 | Last updated 24 Sep 2022

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.