SKY UPDATE | TAXABLE PAYMENTS ANNUAL REPORTS (TPAR)

01 August 2025

If your organisation has paid contractors for services during the 2024/25 financial year, you may need to lodge a Taxable Payments Annual Report (TPAR) by 28 August 2025.

If your business operates in one or more of the following industries, and you have made payments to contractors, it is likely that you will have TPAR reporting obligations.

· Building & construction

· Cleaning

· Courier & road freight

· Information technology

· Security, investigation or surveillance

The term ‘contractors’ includes contractors, subcontractors and consultants.

Where required to report, the following details must be included:

· ABN, name and address

· Total payments made

· GST included

· Withholding amounts (Eg. if they didn’t quote an ABN)

However, not all payments are reportable. Some common exclusions are where:

· Payments are for goods or materials only or where labour is merely incidental to the supply of goods or materials.

· Payments subject to PAYG withholding (e.g. salaries/wages)

TPARs help the ATO verify that contractors are accurately reporting their income in order to level the playing field within industries that have a history of wide-spread non-compliance.

Need help confirming if you’re required to lodge, or want support preparing and lodging your TPAR? Get in touch.

Sky Accountants Ballarat

Phone: 03 5332 8855

Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia

Postal Address: PO Box 2234, Bakery Hill, Victoria 3354

Sky Accountants Gisborne & Macedon Ranges

Phone: 03 5428 1400

Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia

Postal Address: PO Box 270 Gisborne Victoria 3437

Sky Accountants Kilmore

Phone: 03 5782 2299

Office Address: 74B Sydney Street, Kilmore, Victoria 3764, Australia

Postal Address: PO Box 190 Kilmore Victoria 3764

Sky Accountants Bacchus Marsh

Phone: 03 4310 8000

Office Address: 66 Grant Street, Bacchus Marsh, Victoria 3340, Australia

Postal Address: 66 Grant Street, Bacchus Marsh, Victoria 3340, Australia