If you're in building or construction and you pay subcontractors for services, you MUST lodge a TPAR report with the ATO. In 2026, the penalties for non-compliance are severe.
1. What is TPAR?
The Taxable Payments Annual Report (TPAR) is how the ATO tracks payments to subcontractors. We automate this tracking in Xero by marking your subcontractor contacts with the "TPAR" indicator for 2026 reporting.
2. Correcting Subcontractor Invoices
If a subbie doesn't have an ABN on their invoice, or their ABN is cancelled, you need to withhold 47% of their payment. We check every ABN for you to avoid being held liable for their tax debt.
3. Automating Your TPAR Lodgment
Stop the August 28th panic. We lodge your TPAR directly from our professional software, ensuring every payment to subbies is correctly categorized and mapped to the ATO's standards.