TPAR Due 28 August 2026: What Contractor Payments Must You Report?
- Aug 12
- 7 min read
TPAR Due 28 August 2026 is an important deadline for Australian businesses that pay contractors for certain services. This guide explains who may need to lodge a Taxable payments annual report, which contractor payments must be included, what details to collect and why the same records should also be reviewed for NSW payroll tax.
Although the report is lodged during the 2026–27 financial year, the TPAR due on 28 August 2026 covers payments actually made between 1 July 2025 and 30 June 2026. It does not report every contractor your business uses, and TPAR reporting does not automatically determine whether a payment is subject to payroll tax.
Explore our SMB support for payroll, reporting and tax compliance if you would like your contractor records reviewed before the deadline. Sageon supports growing businesses with payroll, payroll tax where required, reconciliations, financial reporting and ongoing tax compliance.
Who May Need to Lodge a TPAR by 28 August 2026?
A business may need to lodge a TPAR if it has an ABN, provides specified Taxable payments reporting system services and pays contractors to provide those services on its behalf.
The six reportable service categories are:
Building and construction
Cleaning
Courier
Information technology
Road freight
Security, investigation or surveillance
Contractors can operate as sole traders, companies, partnerships or trusts. Payments made to employees are not included in a TPAR because employee payments are reported through payroll and Single Touch Payroll.
What Contractor Payments Must Be Reported?
Your TPAR generally includes payments actually made to contractors by 30 June for relevant services they provided on your behalf.
If an invoice combines labour and materials for a reportable service, the ATO generally requires the total payment to be reported. However, payments solely for materials, where any labour is incidental, may not need to be reported.
Unpaid invoices outstanding after 30 June are not included in that year’s report. Payments to employees and workers supplied through certain labour hire or on hire arrangements are also excluded from the business TPAR rules.
What Contractor Details Should You Collect?
For each reportable contractor, your records should include:
The contractor’s ABN, if known
Their business or individual name
Their address
The gross amount paid, including GST and any withholding
The total GST included
Any amount withheld because an ABN was not quoted
If a contractor changed ABNs during the year, the amounts may need to be recorded against each relevant ABN.
Before lodging, reconcile the contractor totals in your accounting system to invoices, bank payments and GST records. This helps catch duplicate suppliers, incorrect ABNs, unpaid invoices and payments coded to the wrong contractor account.
How Should Businesses Lodge the TPAR?
The TPAR can be prepared through compatible business software, Online services for business or a registered tax or BAS agent. The report is due by 28 August each year.
Do not wait until the week of the deadline to review the data. Contractor records can take time to correct, particularly where ABNs are missing, suppliers have changed business structures or payments have been split across several accounts.
Why Does TPAR Accuracy Matter More in 2026?
From Tax Time 2026, TPAR amounts can be prefilled into tax returns for sole traders and contractors who provide relevant services. The ATO says the new prefill process places reported business income into the appropriate labels with GST excluded.
This makes accurate names, ABNs and payment totals increasingly important. Incorrect reporting can create mismatches, amendments and questions for both the business lodging the TPAR and the contractor receiving the income.
Does a TPAR Payment Automatically Count for NSW Payroll Tax?
No. TPAR and payroll tax are separate obligations with different tests.
TPAR is a federal reporting requirement administered by the ATO for contractor payments in specified service categories. NSW payroll tax is administered by Revenue NSW and can apply to payments made under a relevant contract unless an exemption applies.
A contractor having an ABN, issuing invoices or operating through a company does not automatically remove payroll tax exposure. Revenue NSW examines the legal rights and obligations created by the actual arrangement.
Revenue NSW also confirms that it uses information from the ATO and other government agencies to assess contractor payments declared in payroll tax returns. Its audit program uses specialised data matching, research, risk profiling and information sharing to identify possible errors.
For the 2026 to 27 financial year, the NSW annual payroll tax threshold is $1.2 million and the tax rate is 5.45 per cent. Grouping, interstate wages and part year employment can affect how much of the threshold is available.
Which NSW Contractor Exemptions May Apply?
Revenue NSW currently lists seven exemptions for payments made under relevant contracts:
Services ancillary to the supply of goods
Services not ordinarily required by the business
Services required for 180 days or less during the financial year
Services provided by the contractor for 90 days or less
Services also provided by the contractor to the public
Services performed by two or more people
Services for conveying goods provided by an eligible owner driver
The exemptions have detailed conditions. Each contractor and contract should be considered separately, and adequate supporting evidence must be retained. The exemptions do not apply where the worker is properly treated as an employee or where the arrangement is an employment agency contract.
Which Industries Should Review Contractor Payroll Tax Closely?
Revenue NSW publishes specific payroll tax guidance for 12 industry categories:
Building and construction
Cleaning
Direct selling
Gig economy
Information technology
Meat processing
Medical services
Mining
Payroll processors
Point to point transport
Real estate
Security
Revenue NSW describes these as industries with unique payroll tax issues or complex workforce arrangements that commonly lead to reporting errors. They are not presented as a formal list of 13 targeted industries.
Businesses operating in more than one state should also check the rules published by each relevant state or territory revenue authority because payroll tax legislation and administration can differ across Australia.
What Should Booking Agents and Entertainment Businesses Check?
Booking agents, event businesses and production companies may pay sole trader performers, sound technicians, lighting technicians and other contractors. The word “contractor” on an invoice does not settle the payroll tax treatment.
The first question is whether the arrangement is employment, an employment agency contract or a relevant contractor arrangement. If a business obtains workers to provide services in and for a client’s business, the employment agency provisions may apply. In that case, the agent may be liable for payroll tax on payments to those workers, and the standard contractor exemptions may not be available.
It is also important not to confuse payroll tax with TPAR. Performance and entertainment services are not automatically included among the six TPAR service categories. A performer payment may therefore fall outside TPAR while still requiring a separate review for payroll tax, superannuation or employment purposes.
What TPAR Mistakes Cause the Most Rework?
The most common problems include:
Reporting every contractor instead of only relevant service payments
Reporting unpaid invoices rather than payments made by 30 June
Leaving materials out of a mixed labour and materials invoice
Using an incorrect or outdated contractor ABN
Double counting payments recorded under more than one supplier account
Assuming an ABN automatically removes NSW payroll tax exposure
Claiming a contractor exemption without enough evidence
Treating TPAR and payroll tax as though they use the same test
Ignoring the obligation because no contractors were paid during the year
Where your business no longer needs to lodge a TPAR, submitting non lodgment advice can help prevent unnecessary follow up from the ATO. Notify the ATO if no report is due.
What Should Your Business Do Before 28 August?
Use this practical checklist:
Run a contractor payment report for 1 July 2025 to 30 June 2026
Identify which payments relate to TPAR service categories
Separate contractor payments from employee and labour hire payments
Remove invoices that remained unpaid at 30 June
Verify contractor names, addresses and ABNs
Reconcile gross payments and GST to your accounting records
Review NSW contractor payroll tax exposure separately
Keep contracts, invoices and evidence supporting any exemption
Lodge the TPAR, or submit non lodgment advice, by 28 August
Sageon’s tax planning support can help businesses review contractor arrangements before figures are reported across federal and state systems.
For businesses that need assistance preparing and lodging the report, Sageon’s taxation compliance service is designed around accurate records, timely lodgements and advice tailored to each business’s circumstances.
Frequently Asked Questions
Is the TPAR Due on 28 August 2026 for the 2026 to 27 Financial Year?
No. It is lodged during the 2026 to 27 financial year but generally reports eligible payments made during the 2025 to 26 financial year.
Do I Report Every Contractor My Business Paid?
No. Businesses generally report contractor payments for specified TPAR services provided on the business’s behalf.
Are Materials Included in the Reported Amount?
Where one invoice combines labour and materials for a reportable service, the total payment is generally included. A payment solely for materials may not be reportable.
Does an ABN Prove a Contractor Is Exempt From Payroll Tax?
No. Revenue NSW considers the contractual relationship and the services provided, not only the contractor’s ABN or business structure.
Does Lodging a TPAR Mean the Payment Is Taxable for NSW Payroll Tax?
No. The two obligations use different rules and must be reviewed separately.
How Many NSW Contractor Exemptions Are Currently Listed?
Revenue NSW currently publishes seven contractor exemptions.
Review Contractor Payments Before 28 August
A clean TPAR starts with accurate contractor records, but the review should not stop with the ATO report. Businesses should also consider whether the same payments create NSW payroll tax exposure, whether an exemption genuinely applies and whether the evidence would support the position during a review.
Our team can help reconcile contractor payments, prepare the TPAR and assess payroll tax treatment as part of a practical, connected compliance process. Arrange your contractor payment review with Sageon today.
This article is current as at 27 July 2026 and provides general information only. It does not constitute tax, legal or financial advice. Contractor, employment agency and payroll tax outcomes depend on the contracts and circumstances of each arrangement. Businesses operating outside NSW should obtain advice about the legislation applying in each relevant jurisdiction.
