Office (ATO) is reminding thousands of businesses that the Taxable Payments Annual Report (TPAR) must be lodged by August 28, 2025. This reporting ensures transparency in contractor payments—totaling $485 billion across nearly 176,000 businesses—that year. Missing this deadline may lead to hefty penalties, added scrutiny, and disruption to operations.
What Is a TPAR and Who Must Lodge It?
A TPAR is an annual submission that reports payments made to contractors in designated industries. The goal: ensure contractors declare all income to prevent businesses from operating “under the radar.”
Businesses required to lodge include those in:
- Building and construction
- Cleaning
- Courier and road freight
- Information Technology (IT)
- Security, investigation, and surveillance
Government entities that pay grants to ABN holders also must lodge.
Just How Big Is This Reporting?
The scale of TPAR reporting is massive:
- $485 billion in contractor payments
- From almost 176,000 businesses
- Covering over 1.3 million contractors
This level of transparency enables the ATO to pre-fill tax data and detect non-compliance more effectively.
TPAR Deadline & Lodgment Options
| Item | Details |
|---|---|
| Deadline | August 28, 2025 |
| Method | Online only—paper forms no longer accepted |
| Non-lodgment Advice | If you’re exempt, lodge a “non-lodgment advice” by the same deadline |
| Penalty Risk | Missing the deadline triggers escalating fines |
Businesses needing help can lodge via SBR-enabled software or through ATO’s Business or Agent portals.
Penalties & Red Flags to Avoid
Failure to lodge a TPAR can result in:
- Monetary penalties and interest charges
- Flagging for audit or ATO scrutiny
- Reputation damage for non-compliance
The program targets underreporting, especially “cashies” practices and unreported contractor income—vital for protecting honest businesses and the broader tax base.
How to Stay Compliant with TPAR Requirements
Ensure you’re fully prepared:
- Maintain clear contractor records: ABN, name, address, amount paid.
- Use compliant accounting software: Enable TPAR data collection and lodgment.
- Review payment categories: Only report service costs—not materials or refunds.
- Schedule reminders: Build the August 28 deadline into your compliance calendar.
- Submit non-lodgment advice if your business is exempt or no longer makes reportable payments.
Why the ATO Takes TPAR Seriously
- Closes gaps in reporting: Ensures contractors declare income correctly.
- Level playing field: Honest businesses aren’t undercut by those evading tax.
- Better enforcement: Enables data matching, risk profiling, and audits.
The ATO uses TPAR data not to punish but to promote fairness and compliance across industries.
The August 28, 2025 deadline for TPAR lodgment is fast approaching. Acting now ensures you’re compliant, avoid penalties, and protect your business reputation. With $485 billion in payouts under scrutiny, the ATO is serious about transparency.
If you’re in building, IT, cleaning, courier, or security—and you pay contractors—you need to lodge your TPAR or file a non-lodgment notice by August 28. Stay proactive, submit on time, and keep your records audit-ready.
FAQs
What happens if I don’t need to lodge a TPAR?
Submit a TPAR non-lodgment advice form by August 28 to avoid penalties and clarify that you’re exempt.
Can I still use paper forms to lodge?
No. Paper lodgments are no longer accepted. You must lodge electronically via approved platforms or portals.
Can I lodge through accounting software?
Yes—ATO-approved SBR-enabled software can automate data collection and submission, simplifying the process.