Which industries must lodge a TPAR?

Building and construction; cleaning services; courier and road freight; information technology (IT) services; security, investigation, and surveillance services. Mixed businesses where payments for these services represent 10% or more of total business income must also lodge.

What if a contractor doesn't give me their ABN?

If a contractor does not quote their ABN, you are generally required to withhold 47% of the payment (no-ABN withholding). You must still include the contractor in your TPAR using the information you have. Contact the ATO if you are unsure how to handle a specific case.

Does the TPAR apply to employees?

No - TPAR is only for payments to contractors (individuals or businesses paid under a contract for services, not an employment contract). Wages paid to employees are reported separately through single touch payroll.

28 Aug 2026

TPAR - Taxable Payments Annual Report due

Businesses paying contractors in building & construction, cleaning, courier, road freight, IT, security, or investigation services must lodge TPAR for 2025–26 by 28 August. Penalties apply per missed contractor payment record.

What this means for your business

The Taxable Payments Annual Report (TPAR) is an ATO reporting obligation for businesses that pay contractors to provide services in certain industries. From 28 August 2026, businesses must lodge their TPAR covering the 2025–26 financial year (1 July 2025 to 30 June 2026). The TPAR reports the total payments made to each contractor during the year, including their ABN, name, address, and total gross amount paid.

The industries currently required to lodge include: building and construction; cleaning services; courier and road freight; information technology; security, investigation, and surveillance; and mixed businesses where 10% or more of income comes from these services. The ATO uses TPAR data to match contractor income against tax returns and identify contractors who have not correctly reported their income.

Penalties for failing to lodge a TPAR or lodging incorrectly can be significant. For small businesses, the most common issues are: forgetting to collect contractor ABNs, not keeping adequate records of contractor payments, and missing the 28 August deadline.

What your business needs to do

Check whether your business is in a TPAR-reportable industry and paid contractors during 2025–26.
Collect or confirm the ABN, name, and address for every contractor paid during the 2025–26 financial year.
Tally the total gross payments (including GST) made to each contractor for the year.
Lodge the TPAR via your accounting software (Xero, MYOB, QuickBooks all support TPAR lodgement) or via the ATO's Business Portal by 28 August 2026.

Compliance FAQ

Common questions

Free tools and regulator sources

Free tools for this obligation

Regulator sources

Written by Tim Jones, Founder & Principal Consultant, Nifty Computing

Published 28 April 2026 · Last reviewed 5 May 2026

Applies to: Australia (all states and territories)

Sources: ATO

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