TPAR Deadline 28 August: A Sydney Bookkeeper's Guide for Builders

Updated: November 2026

For hands-on help with this, see tradie cashflow and payables.

If you run a building or trade business in Sydney and pay subcontractors, you probably need to lodge a taxable payments annual report (TPAR) by 28 August each year. It lists every contractor you paid for building and construction services in the financial year just ended, with their ABN and the total paid including GST. The easiest TPAR is the one built week by week throughout the year rather than reconstructed in August. This guide covers who must lodge, what goes in, and a simple routine that makes it painless. For a general explanation of TPAR across all industries, see our TPAR explained guide.

Do builders and tradies need to lodge a TPAR?

The ATO says you must lodge if you make payments to contractors for building and construction services, you have an ABN, and your business primarily operates in building and construction services. You are considered primarily in building and construction if any of these apply:

In the current financial year, 50% or more of your business income comes from providing building and construction services.
In the current financial year, 50% or more of your business activity relates to building and construction services.
In the previous financial year, 50% or more of your business income came from providing building and construction services.

Building and construction services are broad. They include work by most trades on construction, alteration, repair and installation, as well as related design and project management. Check the ATO list if you are unsure about a particular service.

What goes in the TPAR?

For each contractor paid for building and construction services, you report:

Their ABN, if known.
Their name and address.
The gross amount paid for the financial year, including GST, in whole dollars.
The total GST included in those payments, and any tax withheld where no ABN was quoted.

Payments to employees are not included. Payments only for materials, with no labour, are generally not reportable. Mixed payments for labour and materials are usually reportable in full.

When and how is TPAR lodged?

TPAR is due 28 August each year for the financial year to 30 June.
It must be lodged online. Paper TPARs are no longer accepted after 28 August 2025.
You can lodge through ATO Online services for business, business software such as Xero, or a registered agent.
If you do not need to lodge in a year, submit a TPAR non-lodgment advice so the ATO does not chase you.

How do you prepare for TPAR all year?

Here is the routine we use for construction clients:

Collect details at onboarding. Before the first payment, get each subcontractor's ABN, legal name, address and GST registration status. Check the ABN on the ABN Lookup site.
Use a consistent contact record. One Xero contact per subcontractor, with the ABN and address filled in, and the contact marked for TPAR reporting.
Code bills to the right accounts. Subcontractor labour to a dedicated account, materials to another, so reportable payments are easy to identify.
Check monthly. Run the Xero TPAR report each month and fix missing ABNs or addresses while the contractor still answers the phone.
Review in July. Reconcile the report to payments, then lodge well before 28 August.

This is part of our monthly bookkeeping for builders.

Why does the ATO care about TPAR?

The ATO uses TPAR data to check that contractors are reporting their income. That means your report needs to be accurate. Errors can lead to questions for you and your contractors, so the records behind the TPAR matter as much as the report.

What about super for subcontractors?

TPAR is separate from super, but they are linked in practice. Under ATO guidance, contractors paid mainly for their labour can be employees for super guarantee purposes. Since 1 July 2026, Payday Super requires super to reach the fund within 7 business days after each payday. Review regular subcontractors against the ATO's employee or contractor guidance, and keep written agreements on file.

What if you missed a TPAR?

Lodge as soon as possible. Penalties can apply for late lodgement. If your records are incomplete, our books catch-up service can rebuild contractor payments from bank records and bills. Our construction bookkeeper guide covers the wider setup.

What do most builders miss?

The previous year counts. If 50% or more of last year's income came from building and construction services, you may need to lodge this year even if your work mix has changed. Check both years each July.

What does a July TPAR review look like?

In the first weeks of July, before the August rush, work through these steps:

Run the TPAR report in Xero for 1 July to 30 June.
Compare the total against all payments coded to subcontractor accounts to make sure nothing is missing.
Check every contractor on the report has an ABN, legal name and address.
Confirm payments to employees and materials-only suppliers are excluded.
Check whether you also paid contractors for other TPAR services, such as cleaning, courier or security, and whether those rules apply to you.
Review and lodge, then save the lodgement receipt with your year-end records.

Doing this in July leaves time to chase missing details and fix coding before the deadline.

What about subcontractors without an ABN?

If a supplier does not quote an ABN, you may need to withhold tax from the payment at the top rate and report it. Check ABNs before the first payment and record them on the contact in Xero. Use the ABN Lookup site to confirm the ABN is active and whether the subcontractor is registered for GST, which affects whether their invoice should include GST.

Keep a copy of each subcontractor's ABN check and invoices with your records, as business records generally need to be kept for 5 years.

FAQ

When is the TPAR due?

28 August each year, for payments made in the financial year ending 30 June.

Can I lodge a paper TPAR?

No. Paper TPARs are not accepted after 28 August 2025. You must lodge online.

Do I report materials-only payments?

Generally no. Payments for labour, or labour and materials combined, are reportable.

What if I do not need to lodge this year?

Submit a TPAR non-lodgment advice to let the ATO know.

Want TPAR done without the August scramble?

We keep subcontractor records clean all year and lodge your TPAR well before 28 August.

Next step: send us a message and a real person replies within a few working hours, or book a free Xero Roast, a 15-minute plain-English review of your file with a fixed quote at the end. Our fixed monthly packs include a 4-hour reply guarantee, no lock-in and a 30-day money-back guarantee.

About Sydney Bookkeeper

Sydney Bookkeeper is the modern, fixed-price Sydney bookkeeper for businesses with staff that are tired of slow, hourly, jargon-spouting incumbents. We work with professional services firms, construction and property businesses, agencies, tech and ecommerce companies, hospitality groups, and health practices across Sydney. Monthly bookkeeping, BAS lodgement, payroll, and Xero file cleanups, all on fixed monthly pricing, no lock-in.

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The team uses a registered BAS Agent for all BAS and IAS lodgement services. Full registration details, agent particulars, and copies of the Tax Practitioners Board (TPB) Code of Professional Conduct, the TPB complaints process, and any conditions on the agent's registration are available on request by emailing hello@sydneybookkeeper.com. This content is general information only, written for Australian small and mid-market businesses. It does not constitute tax, financial product, or legal advice and should not be relied on as such. Tax obligations depend on your individual circumstances. For advice specific to your business, contact the team directly or consult a registered tax agent or licensed financial adviser. Sydney Bookkeeper is not a licensed tax agent or licensed financial adviser. Information was current at the time of publication and may change without notice. We review and update guides periodically.

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