How To Lodge Your TPAR With Xero


The due date for your Taxable Payment Annual report (TPAR) is the 28th of August for the last financial year. TPAR tells the ATO about payments that have been made to contractors providing services. You may need to lodge a TPAR every year is you are a:

  • Business providing:
    • Building and construction services
    • Cleaning services
    • Courier services
    • Road freight services
    • Information technology (IT) services
    • Security, investigation or surveillance services
    • Mixed services (a business providing one or more of the above services)
  • Government entity

This year, it is easier than ever to lodge your TPAR to the ATO all with the help of Xero. Most people are currently providing this information to the ATO via a paper form. Alternatively, some businesses may be creating the TPAR in Xero but then uploading it to the ATO portal separately. This is leading to double-handling of information and data and it can be quite time-consuming for many businesses. Now, you can save time and lodge your TPAR directly via Xero.


How To Set Up Xero For TPAR Lodgement

TPAR lodgement is available in Australian versions of Xero with BAS. The ATO file and CSV export options are still available if you prefer to continue lodging your TPAR in this manner. 

First, you will need to create a contact group. Without doing so, the rules you set up to run the report will find all the contacts you have paid. 

To create a contact group:

  • In the Contacts menu, select “All contacts”
  • Next to Groups, select  “New”
  • Name your new contact group
  • Click “Save”


Next, you will need to set up your rules and run your TPAR report.

  • In your Accounting menu, select “Reports”
  • Within the Tax section, select the option “Taxable Payments Annual Report”
  • Select the year
  • Select “Set up Rules” if you have not set up any rules previously. If you have set up rules previously, select “Edit Report Rules”.
  • In Payments To, choose between “All Contacts” or a contact group you have set up previously.
  • In the “Paid from” field select “All accounts” if you’ve selected an individual contact group in the Payments to dropdown, or select an individual expense account from your chart of accounts.
  • Remember to “Save” your changes


Lodge Your TPAR Report To The ATO Directly From Xero

In order to lodge your TPAR report to the ATO directly from Xero, you need to have the “submit BAS” permission enabled. This is a permission that can be added to users with an advisor user role or users with a standard user role plus reports permission. 

Before lodging your TPAR, make sure you have entered the details of your contractors including their legal (trading) name, their Australian Business Number (ABN) and their physical address within Australia. These details are generally found on their invoice to you.

After creating your TPAR, 

  • Click on “Lodge to ATO”
  • Review all of the details ready to be submitted, then click on “Continue”
  • Select the checkbox on the authorisation screen and then finalise everything by clicking on “Lodge to ATO”.

Once you have done this, you’ll receive an email advising on whether the lodgement of your TPAR was successful or not.


Not sure if you need to report TPAR?

If for any reason you are unsure of your obligations for TPAR, you can see some further information from the ATO here. The information here outlines the types of businesses that may need to lodge a TPAR and what contractor payment information you may need. 

If you’re still unsure and need assistance from an expert, the team at Diverse Business Consultants can help you. We are trained and experienced bookkeepers who can provide you with the advice you need to help your business stay compliant. Give Diverse Business Consultants a call today on 07 3088 7782 or contact us.