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  • Taxable payments annual report (TPAR)

    Businesses and government entities 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.

    A TPAR must be lodged by 28 August each year.

    In this section

    Businesses may need to lodge a TPAR when they make payments to contractors for relevant TPAR services. Government entities may need to lodge a TPAR for payments for services and grants paid to people and organisations.

    See how to prepare and lodge your TPAR. Understand what contractor details you need to report and how to amend a lodged TPAR form.

    Watch the introduction to the Taxable payments reporting system:

    Media: Introduction to the Taxable payments reporting system
    http://tv.ato.gov.au/ato-tv/media?v=bd1bdiunjr5xteExternal Link (Duration: 01:04)

    How contractors can meet their tax obligations

    Contractors should:

    • lodge tax returns by the due date
    • include all income in the tax return
    • lodge any tax returns for previous financial years as soon as possible
    • lodge activity statements by the due date
    • quote the correct and current Australian business number (ABN) on all invoices
    • make a voluntary disclosure if a mistake was made on a previously lodged tax return. Penalties may be reduced when voluntarily disclosures are made
    • keep records of all the income received and payments made. Keeping records of all business transactions helps to report income and claim deductions
    • check that all other tax obligations are met.

    How we use the information in a TPAR

    We use the information in a TPAR to put income information into the online tax returns of contractors.

    Why we collect contractor information

    The TPAR system aims to:

    • create a level playing field
    • prevent dishonest operators from gaining an unfair advantage over the majority
    • identify contractors who do not meet their tax obligations.
    Last modified: 26 Aug 2021QC 32057