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  • When you need to lodge a TPAR

    Whatever your main business activity is, you may need to lodge a Taxable payments annual report (TPAR) if you provide any of the services listed below, even if it's only part of the services you provide.

    You must reassess whether you need to lodge a TPAR each year.

    Follow the links below to work out if you need to lodge a TPAR or you can speak to your tax professional.

    Make sure you keep records of all the payments you make to contractors. Keeping good records during the year will make it easier to lodge.

    Note: Even if you're not sure if you need to lodge in a financial year, you can choose to lodge a TPAR anyway.

    Find out about:

    Building and construction services

    If your business is primarily in the building and construction industry, you will need to lodge a TPAR if you both:

    • make any payments to contractors for building and construction services
    • have an Australian business number (ABN).

    Payments made to employees are not included in your TPAR.

    You need to report these payments to us on the TPAR by 28 August each year.

    Activities and services considered to be building and construction are broad. Some examples include:

    • architectural work (including drafting and design)
    • certification
    • decorating (including painting)
    • engineering
    • landscape construction
    • project management
    • surveying.

    Check our examples of building and construction services to see whether your business activities and the services you pay for are included.

    When is a business 'primarily in the building and construction industry'?

    Your business is in building and construction for TPAR purposes if any of the following apply:

    • in the current financial year, 50% or more of your business income is earned from providing building and construction services
    • in the current financial year, 50% or more of your business activity is building and construction services
    • in the previous financial year, 50% or more of your business income is earned from providing building and construction services.

    Example: Business in the building and construction industry paying a contractor for building and construction services

    Mohamed is a builder, and Mario is an electrician. Mohamed is managing a new property development, and has contracted Mario to install the wiring in all the houses.

    Mario is providing building and construction services to Mohamed’s building and construction business as a contractor.

    Mario invoices Mohamed for work done, including labour and materials.

    Mohamed already needs to keep records for tax return and BAS purposes. He also needs to report the total of all the payments he makes to Mario throughout the year to the ATO on the TPAR.

    If Mohamed has contracted other workers like Mario, he needs to report the total of all payments he makes to them also, on the TPAR.

    End of example

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    Authorised by the Australian Government, Canberra

      Last modified: 03 Jun 2020QC 43149