Tradies & cleaners, have you heard of TPAR?
Have you heard of TPAR? Most business owners have no idea what it is until their bookkeeper or accountant asks for it in July or August.
TPAR stands for Taxable Payments Annual Report.
It's an Australian Taxation Office (ATO) requirement where certain businesses must report payments made to other trades, inc subcontractors, throughout the financial year. The ATO uses this information to ensure all trades and subcontractors are correctly reporting their income in their own tax returns & business tax returns.
Do you need to lodge a TPAR?
You may need to lodge a TPAR if your business pays other trades inc subcontractors for services in industries such as:
- Building and Construction
- Cleaning
- Courier and Road Freight
- Information Technology (IT)
- Security, Investigation or Surveillance
For each trade inc subcontractors paid during the financial year, you'll generally need to report:
- Name and business name
- Address and contact details inc phone number
- Australian Business Number (ABN)
- Total amount paid
- Total GST included in those payments
- Bank account details of where you’ve been paying the money into (updated requirement as of 2024)
One reason it's important to keep your bookkeeping up to date throughout the year is because all of this information should already be sitting in your accounting software.
If trades or subcontractor details aren't entered correctly from the beginning, August can quickly become a headache. If your data is entered correctly in Xero you can lodge straight from Xero (depending on how many trades or subcontractors you have on the books) or you will have to lodge via the ATO portal.
Key TPAR date to remember
📅 TPAR is due by 28 August each year for the previous financial year.
The biggest mistake I see isn't business owners refusing to do it. It's simply not knowing they need to do it.
Good bookkeeping isn't just about knowing your profit. It's also about staying compliant and avoiding unnecessary stress when reporting obligations arise. Because confidence in your numbers starts with having accurate data in the first place.
Learn more
You can learn more about TPAR at https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/reports-and-returns/taxable-payments-annual-report