TPAR Penalties: What the ATO Actually Charges for Late or Missing Reports

Meta description: How much does the ATO fine you for missing a TPAR? Learn the exact penalty amounts, how they're calculated, and what to do if you've already missed the deadline.

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The ATO doesn't send gentle reminders about missed TPARs. It sends penalty notices. And unlike some ATO obligations where there's a grace period, TPAR penalties start accruing automatically once the 28 August deadline passes.

Here's exactly what you're risking if you miss it — and what to do if you already have.

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How TPAR penalties work

The ATO applies a Failure to Lodge (FTL) penalty for missing or late TPARs. The penalty is calculated per 28-day period that your report is overdue, and it compounds.

The penalty amounts (2025–26)

| Entity type | Penalty per 28-day period | Maximum penalty | |-------------|--------------------------|----------------| | Small business (turnover under $1M) | $313 | $1,565 (5 periods) | | Medium business (turnover $1M–$20M) | $626 | $3,130 | | Large business (turnover over $20M) | $1,565 | $7,825 |

So if you're a small builder and you forget to lodge, and the ATO catches it 4 months later:

• 4 periods × $313 = $1,252 in penalties

On top of any other tax issues your non-lodgement flags.

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When do penalties start?

Penalties begin the day after the due date — 29 August. Each subsequent 28 days adds another penalty unit.

As of March 2025, the ATO began actively issuing FTL notices to businesses with overdue TPARs. This isn't a threat they park — they run automated matching and send penalty notices systematically.

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Can the ATO waive TPAR penalties?

Yes, in some circumstances. The ATO can remit (cancel or reduce) penalties if:

• The business has a good compliance history
• There were genuine extenuating circumstances (serious illness, natural disaster, ATO system issues)
• The business lodged voluntarily before receiving a penalty notice

Voluntary disclosure matters. If you haven't lodged and no penalty has been issued yet, lodging now — even late — puts you in a better position to request remission than waiting for a notice.

To request remission, lodge the overdue TPAR, then contact the ATO (1800 806 218 for small businesses) and explain the circumstances.

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What triggers an ATO audit?

The ATO uses TPAR data to cross-reference contractor income declarations. When a business lodges a TPAR reporting payments to a contractor, the ATO matches that against the contractor's tax return.

If the contractor hasn't declared the income, the ATO pursues the contractor. But in the process, they also look at the payor — your business — for compliance issues:

• Did you lodge on time?
• Are the ABNs you reported valid?
• Does the total match your expense claims?

A TPAR with errors or inconsistencies is a flag. A missing TPAR is a bigger one.

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What if I've never lodged a TPAR?

If you've been paying subcontractors in a covered industry for years and never lodged, you can catch up. The ATO allows backdated lodgements for up to five years.

Steps:

1. Compile your contractor records for each missed year
2. Lodge through ATO Online Services (log in with myGovID, navigate to TPAR)
3. Lodge each year separately — one TPAR per financial year
4. Contact the ATO to request penalty remission, citing voluntary disclosure

The ATO is generally more lenient with businesses that come forward before they receive a notice. Waiting makes it worse.

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What if I can't find old contractor details?

Do the best you can. If you have old invoices, extract the ABN from there. If you don't have invoices, check your bank statements and try to identify the contractors.

For contractors where you genuinely can't find the details, document your attempts and contact the ATO before lodging. Partial lodgements with an explanation are better than nothing.

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How to avoid TPAR penalties going forward

The simplest approach: treat TPAR as a year-round process rather than a last-minute August scramble.

1. Collect ABNs at the start of every contractor engagement — before the first payment, not after
2. Keep a running record of contractor payments throughout the year (a simple spreadsheet works)
3. Set a July reminder to start collecting any missing details
4. Lodge in early August — not the week of the 28th

If collecting subcontractor details is the bottleneck, SubbieLodge lets you send contractors a link to fill in their own details. ABNs are validated automatically. $99/year — less than one penalty period.

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Summary

• TPAR penalties start at $313 per 28-day period for small businesses
• They compound — four months late = over $1,200 in fines
• The ATO actively enforces this — over $18M in penalties issued to 11,000+ businesses
• Voluntary lodgement before receiving a notice improves your chance of remission
• If you've never lodged, catch up now — you can go back five years