Definition
A TPAR (Taxable Payments Annual Report) is an annual report certain Australian businesses must lodge with the Australian Taxation Office listing payments made to contractors for services. It covers industries such as building and construction, cleaning, courier and road freight, IT, and security services. It is due by 28 August each year.
Also called: Taxable payments annual report, Taxable payments reporting system, TPRS
TPAR in practice
For each contractor, the report shows their ABN, name, address, the total paid for the year including GST, and the GST included. The ATO matches it against the contractors' own tax returns.
Contractor invoices are the main source for the report, so ask every contractor for an invoice that shows their ABN, the amount, and the GST. Payments for materials only are not reported.
Businesses that mainly provide building and construction services must lodge if they pay contractors for that work. For cleaning, courier and road freight, IT, and security services, you must lodge if those services make up 10 percent or more of your business income.
Example
A Sydney building company paid three subcontractors a total of $185,000 in the year to 30 June. Its TPAR, lodged by 28 August, lists each contractor's ABN, the amount paid, and the GST included.
Frequently Asked Questions
Do contractors need to do anything for TPAR?
Not directly. They should quote their ABN on invoices and report all their income, because the ATO uses TPAR data to check contractors' returns.
Are payments to employees included in TPAR?
No. TPAR covers payments to contractors. Wages paid to employees are reported through Single Touch Payroll instead.
Related terms
- ABN An ABN, or Australian Business Number, is an 11-digit number that identifies a business to the Australian government and other businesses.
- BAS A BAS (Business Activity Statement) is the form Australian businesses registered for GST lodge with the Australian Taxation Office to report and pay GST, PAYG withholding, PAYG instalments, and other taxes.
- No ABN withholding No ABN withholding is an Australian rule requiring a business to withhold 47 percent of a payment to a supplier that does not quote an Australian Business Number on its invoice or other documents.
- Form 1099-NEC Form 1099-NEC is the IRS information return a US business files to report payments for services made to an independent contractor or other non-employee during the year.
- T4A slip A T4A slip is a Canada Revenue Agency information slip that payers file to report certain income other than employment, including fees paid to contractors and other businesses for services.
This page is for general information only and is not legal, tax, or financial advice. Rules change and vary by location, so consult a qualified lawyer or accountant about your situation.