Using TPAR to Lodge Contractor Payments

You can now make Taxable Payment Annual Report (TPAR) lodgements directly to the Australian Taxation Office (ATO) from Xero at the press of a button. 

Currently, people fill in a paper form and send it to the ATO, or use Xero to create a TPAR and upload the file to the ATO portal which can be quite time consuming. Lodging TPAR direct from Xero makes the process quicker and easier, saving time and streamlining workflows – helping you deal with TPAR lodgements more efficiently. 

Here’s How It’s Done

Set up your TPAR lodgement in Xero following the instructions in the Xero Central support article or check out this video for a step-by-step guide.

TPAR lodgement is available in Australian versions of Xero with BAS. The ATO file and CSV export options remain available for use as well, for those that prefer to deal with lodging to the ATO in the traditional way

TPAR Coverage

Industry coverage for TPAR is increasing regularly and continues to expand, currently including:

  • Building and Construction (introduced 2012) 
  • Cleaning (effective 2018, first reports due this year) 
  • Courier (effective 2018, first reports due this year)
  • Road Freight (effective from 2019, first reports due 2020)
  • IT (effective from 2019, first reports due 2020)
  • Security (effective from 2019, first reports due 2020)

Soon there will be over 500,000 businesses needing to lodge TPAR and it’s anticipated industry coverage will increase further as well. If you’re not sure whether you need to lodge TPAR check out the ATO TPAR help page.

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