Businesses providing building and construction services have been required to report payments made to contractors to the ATO on an annual basis since 2012.

The government expanded the reporting requirements to businesses providing cleaning and courier services from 1 July 2018.

From 1 July 2019, businesses operating in the following industries will also be required to report payments made to contractors to the ATO:

security
investigation or surveillance
road freight services
information technology services

The Taxable Payments Annual Report (TPAR) advises the ATO about payments that have been made to contractors for providing services. Contractors can include subcontractors, consultants and independent contractors. They can be operating as sole traders (individuals), companies, partnerships or trusts.

The details you need to report about each contractor are generally found on the invoice you have received from them, and includes:

their Australian business number (ABN)
their name and address
gross amount you paid to them for the financial year (including any GST).

If your business operates in the new industries, then your first TPAR will be due on 28 July 2020.

For businesses operating in the construction and building, cleaning or courier industries, the 2018/19 TPAR is due for lodgement on 28 July 2019.