TPAR Deadline Alert – Penalties Now Apply for Overdue Reports

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TPAR Deadline Alert – Penalties Now Apply for Overdue Reports

What Is the TPAR?
The Taxable Payments Annual Report (TPAR) is a required report for certain businesses that pay contractors. It provides the Australian Taxation Office (ATO) with details of payments made to contractors for services during the financial year. This data helps the ATO detect undeclared income and improve tax compliance.

Who Needs to Lodge a TPAR?
You must lodge a TPAR if your business provides any of the following services and pays contractors or subcontractors for their work:

• Building and construction services
• Cleaning services
• Courier or road freight services
• Information technology (IT) services
• Security, investigation, or surveillance services
• Mixed services businesses, where at least 10% of income comes from the above

If any part of your business involves engaging contractors in these areas, you are legally required to report those payments via a TPAR.

TPAR Due Date: 28 August Each Year
The deadline for lodging the TPAR for the 2023–24 financial year was 28 August 2024. Businesses that missed this deadline are now subject to penalties, with enforcement having commenced as of 22 March 2025.

What Are the Penalties for Late Lodgement?
The ATO has begun applying Failure to Lodge (FTL) penalties for overdue TPARs. These penalties are calculated based on:

• The size of your business (small, medium, or large)
• How long the report is overdue
• Whether there have been previous lodgement issues

Penalties start at $313 and can exceed $1,500, with amounts increasing the longer the report remains outstanding.

What Should You Do If You’ve Missed the Deadline?

• Lodge your TPAR as soon as possible to limit penalties
• Contact the ATO or your tax agent to discuss remission options
• Work with an accountant to ensure accuracy and compliance

The ATO has stated that lodging the TPAR promptly—even after the due date—can reduce penalty severity. Proactive contact often leads to more lenient treatment.

How Trinity Accounting Practice Can Help
At Trinity Accounting Practice, we assist clients by:

• Reviewing your business activities to confirm if TPAR applies
• Collecting and verifying contractor payment data
• Lodging accurate TPARs before and after the deadline
• Managing penalty disputes or remission applications
• Ensuring compliance for future reporting periods

If you’re unsure about your TPAR obligations or have received a penalty notice, our team is ready to help resolve the issue and prevent it from happening again.

Conclusion
The ATO’s enforcement of overdue TPAR lodgements in 2025 underscores the importance of meeting your reporting deadlines. If your business is required to lodge and has not yet done so, penalties are already in effect. Taking immediate action will limit the financial consequences and show good faith to the ATO.

Let Trinity Accounting Practice help you lodge, comply, and stay on top of your obligations.

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