The Complete TPAR Guide for Australian Small Businesses (2026)

What is a TPAR?

TPAR stands for Taxable Payments Annual Report. It's a report submitted to the ATO once a year, listing all the subcontractors you paid during the financial year (1 July – 30 June).

The ATO uses the data to cross-check whether your subcontractors are declaring the income you paid them. It is one of the key tools the ATO uses to close the “cash economy” gap in the building and construction industry and other contractor-heavy sectors.

Who needs to lodge a TPAR?

You must lodge a TPAR if your business paid subcontractors for any of the following services:

• Building and construction — builders, plumbers, electricians, concreters, carpenters, tilers, landscapers
• Cleaning — commercial and domestic cleaning businesses
• Courier and delivery — couriers, freight operators
• IT services — software developers, IT consultants, tech contractors
• Security services — security guards, alarm monitoring contractors

The obligation is based on the type of service, not your business size or turnover. A sole-trader builder who paid one subcontractor $200 for a day's labouring still needs to lodge.

If you are genuinely unsure, the ATO has a short eligibility checker on their website. When in doubt, lodge — there is no penalty for lodging when you didn't strictly need to, but there is a penalty for failing to lodge when you should have.

What is the TPAR deadline?

TPAR is due 28 August each year, covering the financial year ended 30 June. So the 2024–25 TPAR (covering payments made 1 July 2024 – 30 June 2025) is due 28 August 2025. Mark it in your calendar now.

If you use a registered BAS agent or tax agent, they may have an extended lodgement schedule. Check with your agent.

What do you need to report for each subcontractor?

For every subcontractor paid during the year you must report:

• Their name (individual or business name)
• Their ABN (Australian Business Number)
• Their address
• The total gross amount paid during the year (including GST)
• The GST component included in those payments

You do not need to report employees — only subcontractors (contractors, freelancers, sole traders, and companies you engaged for services).

How to lodge a TPAR

There are several ways to lodge:

1. ATO Online Services for Business — you can lodge directly through the ATO portal by manually entering each subcontractor record.
2. Accounting software — Xero, MYOB, and QuickBooks all support TPAR export. You'll need to have tracked subcontractor payments correctly all year.
3. Purpose-built TPAR tools — tools like SubbieLodge let you collect subcontractor details and export the ATO-format file without a full accounting subscription.
4. BAS agent or tax agent — you can engage a registered agent to lodge on your behalf.

The ATO accepts TPAR lodgements in a specific file format (.ato or via direct entry). If you are generating a file, make sure your software produces an ATO-compliant output.

What are the penalties for getting TPAR wrong?

The ATO takes TPAR seriously. The main penalties are:

• Failure to Lodge (FTL) — one penalty unit ($313 in 2025) for each 28-day period the TPAR is overdue, up to five penalty units ($1,565 maximum for small entities). Medium and large entities face higher multipliers (two times and five times respectively).
• False or misleading statements — if you deliberately under-report or misreport payments, the ATO can apply shortfall penalties on top of FTL penalties.
• No-ABN withholding failure — if you paid a contractor who did not provide an ABN and you failed to withhold 47%, the ATO can hold you liable for that amount.

Over 11,000 businesses were penalised in a recent ATO compliance campaign, with average penalties of around $1,110 each. Lodging on time is the simplest way to avoid these.

How to collect subcontractor data before lodgement

The hardest part of TPAR for most businesses is not the lodgement itself — it's chasing up ABNs and payment totals at the end of the year. Here's how to make it easier:

• Collect ABNs before work starts. Make it a condition of engagement. Send a short form or request an invoice that includes their ABN before you pay them.
• Use a consistent invoicing system. Whether it's a spreadsheet or accounting software, record each subcontractor invoice as it arrives, tagged to the contractor's ABN.
• Verify ABNs on the ABN Lookup website. An ABN can be cancelled or inactive. Always check before lodging.
• Send reminders in June. If you are still waiting on details from contractors at year-end, send a reminder before 30 June so you are not scrambling in August.
• Use a dedicated TPAR collection tool. SubbieLodge sends your subcontractors a short online form to submit their own details, removing the back-and-forth entirely.

Go deeper: individual TPAR guides

Each article below covers a specific aspect of TPAR in more detail. If you have a particular question, start with the most relevant one.

• What Is a TPAR? A Plain-English Guide
• How to Lodge a TPAR Without Xero (or Any Accounting Software)
• TPAR Checklist 2026: Everything You Need Before You Lodge
• TPAR Penalties: What the ATO Will Fine You (and How to Avoid It)
• How to Collect Subcontractor ABNs Before It's Too Late
• TPAR for Builders and Tradies: What You Actually Need to Do

Frequently asked questions about TPAR