Spoke · Pillar: BAS / GST Compliance

Five industries. Annual lodgement. 28 August deadline.

TPAR — the Taxable Payments Annual Report — is mandatory for businesses in five specific industries that pay contractors. It is in addition to BAS, not in place of it. Miss the 28 August deadline and the FTL penalty stacks on top of any BAS / GST issues.

Why this lives on XIntelliSync, not on a contractor-platform marketing page

TPAR catches SMBs in the 5 mandatory industries (building & construction, cleaning, courier & road-freight, IT services, security/investigation/surveillance) when contractor ABN verification fails at the 28 August annual lodgement. By then the contractor may have changed business structure, deregistered the ABN, or never had one. XIntelliSync's payment agents verify ABN status at payment-time via abr.business.gov.au — every contractor payment carries the verified ABN-active flag in the audit log. The article below is the TPAR field schema, the ABN verification workflow, and the 5-industry coverage map.

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Quick answer

TPAR is mandatory for 5 Australian industries — building & construction, cleaning, courier and road-freight, IT services, security/investigation/surveillance — that pay contractors. Lodge annually by 28 August for the previous financial year. XIntelliSync assembles the TPAR data per contractor (ABN verified against ABN Lookup, GST status, totals); you lodge externally via the ATO Business Portal.

The 5 mandatory industries

If your business primarily carries on one of these — TPAR applies.

The "primarily" test applies. Mixed-activity businesses may still be required to lodge TPAR for the qualifying portion of activity.

Building & Construction

Scope: Mandatory since 1 July 2012. Any business primarily carrying on building & construction services.

Contractor types reported: Sub-contractors, sole-trader tradespeople, ABN-registered project workers, hire-purchase plant operators with ABN.

Cleaning Services

Scope: Mandatory since 1 July 2018. Businesses primarily providing cleaning services (commercial, industrial, domestic).

Contractor types reported: Sub-contracted cleaners, ABN-registered crew, agency-supplied cleaners where the agency invoices the business.

Courier and Road Freight Services

Scope: Mandatory since 1 July 2018 (couriers) and 1 July 2019 (road freight). Businesses primarily providing these services.

Contractor types reported: ABN-registered driver-contractors, sub-contracted freight carriers, owner-driver arrangements with ABN.

Information Technology Services

Scope: Mandatory since 1 July 2019. Businesses primarily providing IT services — software development, web design, network services, technical support.

Contractor types reported: ABN-registered consultants, freelance developers, contracted technical specialists, project-based engagements.

Security, Investigation, Surveillance Services

Scope: Mandatory since 1 July 2019. Businesses primarily providing security/investigation/surveillance services.

Contractor types reported: ABN-registered guards, sub-contracted security personnel, investigators, agency-supplied workers.

What to report per contractor

Six fields per contractor. Every payment captured.

  • Contractor ABN

    12 345 678 901

    Australian Business Number of each contractor paid during the financial year. Verified against ABN Lookup.

  • Contractor name

    Smith Construction Pty Ltd

    Legal name registered against the ABN. Trading names captured separately.

  • GST registration status

    Registered / Not registered

    Whether the contractor is registered for GST at the time of payment. Affects whether GST credits were claimable.

  • Total amount paid (gross)

    $87,420.00

    Sum of all payments made to the contractor during the financial year (1 July to 30 June). Includes GST where charged.

  • GST amount included

    $7,947.27

    GST component of total paid (where contractor was GST-registered). Reported separately.

  • Address (if no ABN supplied)

    47%-no-ABN withholding may apply

    If a contractor did not supply an ABN, report their full address instead. Triggers PAYG no-ABN withholding.

External lodgement portals + ABN verification

Where to verify ABNs. Where to lodge TPAR.

ABN Lookup — abr.business.gov.au

Free authoritative ABN verification. Enter any ABN to confirm legal name, ABN status, GST registration, and registration history. Use this BEFORE adding a contractor and re-verify before TPAR lodgement.

ATO Business Portal — bp.ato.gov.au

Lodge prepared TPAR file once contractors verified. Path: Manage employees → Taxable payments annual report. Requires myGovID + Relationship Authorisation Manager (RAM) access.

ATO TPAR guidance — ato.gov.au/business/payments-to-others/taxable-payments-annual-report-tpar

Authoritative source for TPAR rules, mandatory industry definitions, what to report, and the 28 August deadline schedule.

Tax Practitioners Board — tpb.gov.au/tax-agent-finder

Find a registered tax agent or BAS agent for TPAR lodgement. Tax-agent lodgement may grant deadline flexibility on a case-by-case basis.

XIntelliSync prepares the TPAR data. You lodge externally at the ATO Business Portal.

All 22+ industries served

TPAR mandatory? GST classification? By industry.

Not every industry is TPAR-mandatory — but the GST classification + BAS-cycle nuance still applies. Below: the most-relevant BAS/GST/TPAR feature for every industry XIntelliSync serves.

  • Construction

    TPAR mandatory — building & construction industry must report contractor payments annually by 28 August. GST on supplies, GST credits on materials. Progress claim invoicing creates BAS timing complexity.

  • Healthcare

    Many medical services GST-free under Division 38-7 (medical services) and Division 38-10 (other health). Allied health may be partially GST-free. Pharmacy mixed — most prescription medicines GST-free, retail products taxable.

  • Hospitality

    Restaurant meals consumed on-premises taxable at 10% GST. Takeaway food may be GST-free if it qualifies as basic food per Division 38. Liquor always taxable. Tip pooling does not affect GST.

  • Retail

    Most retail goods 10% GST taxable. Basic food items (bread, milk, fresh fruit/veg, plain meat) GST-free under Division 38 Schedule 2. Mixed baskets require per-line classification — software with up-to-date ATO classification codes is essential.

  • Consulting / Professional Services

    Most consulting services 10% GST taxable. Exports of services may be GST-free under Division 38. Sub-contracted work to other GST-registered consultants — GST on supplier invoice claimable as input credit. TPAR may apply for cleaning/IT/security services.

  • Digital / Tech

    Software licences and SaaS subscriptions to AU customers: 10% GST. Exports to overseas customers: typically GST-free under Division 38 export rules. TPAR mandatory for IT services to other businesses. Stripe/payment-processor fees include GST claimable as input credit.

  • Finance

    Most financial supplies INPUT-TAXED under Division 40 — no GST charged on supply, no GST credits claimable on related expenses. Fee-based services (advisory, brokerage) often taxable at 10% GST. Mixed-supply businesses must apportion input credits.

  • Legal

    Legal services 10% GST taxable. Trust account holdings are NOT consideration for supply — no GST until earned/billed. Disbursements (court filing fees, expert reports) may be GST-free or taxable per ATO rulings. Expense recoveries treated per the Goods and Services Tax Ruling GSTR 2000/37.

  • Childcare

    Childcare services GST-free under Division 38-145 if approved-services or registered-carer. CCS subsidy reconciliation creates BAS timing complexity. Materials and supplies (10% GST) claimable as input credits.

  • Education

    Most education courses GST-free under Division 38-85 (education courses) when delivered by registered training organisations or approved tertiary providers. Course materials may be partially taxable. International student fees typically GST-free under Division 38 export rules.

  • Manufacturing

    Manufacturing supplies generally 10% GST taxable. Exports GST-free under Division 38. Raw materials with GST claimable as input credits. Capital purchases (machinery, vehicles) GST claimable in the period acquired. Quarterly BAS most common; monthly required if turnover exceeds $20M.

  • Transport

    Road freight services 10% GST taxable. International freight (export and import legs) typically GST-free under Division 38. Fuel tax credits available — separate claim through BAS. TPAR mandatory for road freight services to businesses.

  • Mining

    Mining production 10% GST taxable; exports GST-free. Substantial fuel tax credits, R&D tax incentive offsets, and capital allowances flow through BAS. Native title and royalty payments have specific GST treatment per ATO mining-industry rulings.

  • Agriculture

    Most fresh food (bread, milk, fruit, vegetables, meat) GST-free under Division 38 Schedule 2. Processed/packaged food typically taxable. Fuel tax credits available for off-road farm machinery. Livestock sales GST-free between primary producers.

  • Fitness

    Fitness services 10% GST taxable. Membership fees GST applies. Equipment retail (apparel, supplements) taxable. Personal-trainer commissions to contractors may trigger TPAR if industry-wide reporting becomes mandatory.

  • Non-profit

    Charitable not-for-profits with GST registration: most fundraising events GST-free under Division 38 if non-commercial test passes. Gifts and donations not consideration — no GST. Government grants may or may not be consideration depending on conditions. NDIS supports GST-free under Division 38-38.

  • Events

    Event ticket sales 10% GST taxable. Bundled packages (ticket + food + accommodation) require apportionment per ATO events-industry guidance. Sponsorship income generally taxable. Door-takings reconciliation drives BAS-period accuracy.

  • Creative

    Creative services to AU clients 10% GST taxable. International commissions GST-free under Division 38 export rules. Royalty income taxable. TPAR may apply for security/courier/cleaning sub-contractors used in production.

  • Marketing

    Marketing services 10% GST taxable. Media spend pass-through (Google Ads, Meta Ads) — GST treatment depends on whether you re-bill or just facilitate. Overseas service exports GST-free under Division 38.

  • Human Resources

    HR consulting and recruitment services 10% GST taxable. Placement fee payments are taxable supplies. Background-check pass-through costs require apportionment if charged at-cost vs marked-up.

  • Insurance

    General insurance premiums INPUT-TAXED under Division 40 — no GST on the premium portion, but the policy holder may claim a decreasing adjustment. Life insurance premiums GST-free. Brokerage and intermediary services taxable at 10% GST.

  • Real Estate

    Residential rent INPUT-TAXED under Division 40 — no GST charged, no GST credits on related expenses. Commercial property rent generally 10% GST taxable. Sale of new residential premises taxable; existing residential GST-free under Division 38. Property management fees 10% GST taxable.

TPAR contractor reporting. Questions answered.

Which industries must lodge TPAR?+
Five industries: (1) Building and construction services (mandatory since 1 July 2012), (2) Cleaning services (since 1 July 2018), (3) Courier services and road freight services (couriers since 1 July 2018; road freight since 1 July 2019), (4) Information technology services (since 1 July 2019), (5) Security, investigation, or surveillance services (since 1 July 2019). The "primarily" test applies — your business must primarily carry on one of these activities to be required to lodge TPAR. Mixed-activity businesses may need to lodge TPAR for the qualifying portion.
When is TPAR due?+
TPAR is due annually by 28 August each year for the previous financial year (1 July to 30 June). Example: TPAR for the 2025-26 financial year (transactions from 1 July 2025 to 30 June 2026) is due by 28 August 2026. The deadline is fixed — no quarterly equivalent. Lodge via the ATO Business Portal at https://bp.ato.gov.au or via your tax agent. Late TPAR lodgement attracts ATO Failure to Lodge penalties on the same scale as BAS FTL penalties.
What do I report on TPAR?+
For each contractor paid during the financial year: contractor ABN, contractor legal name (and trading name if different), GST registration status at the time of payment, total amount paid (gross — including GST where charged), GST amount included in total. If a contractor did not supply an ABN, report their full address instead — this triggers the 47% no-ABN PAYG withholding obligation. Most TPAR-lodging businesses run dozens to hundreds of contractor records per year.
How do I confirm a contractor's GST status?+
Use the free ABN Lookup service at https://abr.business.gov.au — enter the ABN and it returns the registered legal name, ABN status (active / cancelled), GST registration status (registered / not registered), and registration history. Best practice: verify ABN + GST status at the start of every engagement and re-verify before TPAR lodgement. ABN Lookup is the authoritative source — your contractor's invoice claim of GST registration is not sufficient.
What's the difference between TPAR and STP Phase 2?+
STP Phase 2 (Single Touch Payroll) is for EMPLOYEES — lodged with the ATO on every pay run, captures wages + PAYG withholding + super. TPAR is for CONTRACTORS — lodged annually by 28 August, captures payments to ABN-holding contractors. STP and TPAR are separate lodgements; a business may lodge both. Misclassifying an employee as a contractor (sham contracting) risks Fair Work Act penalties separate from ATO TPAR obligations.
What happens if I don't lodge TPAR?+
The ATO's Failure to Lodge penalty regime applies. Penalties scale with entity size — small entities (turnover under $1M) attract 1 penalty unit per 28-day period overdue (max 5 units), medium entities ($1M-$20M) attract 2 units per period (max 10), large entities (over $20M) attract 5 units per period (max 25). Penalty unit value is CPI-indexed. The ATO uses TPAR data to data-match against contractor income tax returns — late or missing TPAR also raises audit-flag risk for the lodging business and the contractors.
How does XIntelliSync prepare TPAR?+
XIntelliSync's TPAR Preparation agent assembles the report from the live transaction data in your account. It identifies all ABN-paid contractors during the financial year, looks up each contractor's ABN against ABN Lookup to verify legal name + GST status, sums the gross paid + GST component per contractor, and generates the TPAR file in the ATO-required format. XGVS verification gates run on every TPAR preparation — flagging missing ABNs, mismatched names, or GST-status changes mid-year. You lodge externally at https://bp.ato.gov.au; XIntelliSync records the ATO acknowledgement reference in the audit log.

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Every contractor verified. TPAR ready by 28 August.

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