# How to report contractor payments for TPAR from Xero

Check if you must lodge, list supplier payments from 1 July to 30 June from Xero and report ABN, name, address, gross and GST. Lodge online by 28 August.

The Taxable payments annual report (TPAR) tells the ATO what you paid contractors in certain industries during the financial year.

## Before you start

- Permission to view reports
- Edit Activity Statements permission to lodge from Xero

## The Xero way

Where to find it: Reporting > All reports > Taxable Payments Annual Report

1. Create a contact group and add your contractors and subcontractors. Make sure the organisation's legal name matches the ATO record for your ABN.
2. Open the Taxable Payments Annual Report, select the year and click Set up TPAR. Set rules by contact group, expense account or both (up to 12 rules).
3. Fix everything under Needs attention (missing or invalid contact and organisation details), then review transactions per contact.
4. Click Lodge to ATO, or export in ATO format and lodge in the ATO Online Business Portal.

## Limits in Xero

- The report includes paid bills, spend money and prepayments to expense accounts. It excludes credit notes, overpayments and payments in other currencies.
- You cannot lodge from Xero if the organisation is in a trial, the report has overseas payees, it is a nil TPAR or it has more than 250 contacts.

## Good to know in Xero

- Lodgement history (date, user, status) is saved in History and notes.

## Example in Xero

Example Concrete Pty Ltd is in your contractor contact group. The report year has two paid bills and one credit note.

- Bill paid in September: $4,400.00 (GST $400.00, included)
- Bill paid in February: $2,200.00 (GST $200.00, included)
- Credit note: -$1,100.00 (Not in the report)

The report shows gross $6,600.00 and GST $600.00 for Example Concrete Pty Ltd. Xero leaves the credit note out, so check it against your records before you lodge.

## Common mistakes

- Not matching the organisation's legal name to the ATO record for your ABN.
- Expecting credit notes, overpayments or payments in other currencies on the report. Xero excludes them.

## Common questions

### Where is the TPAR report in Xero?

Reporting > All reports > Taxable Payments Annual Report. Select the year and click Set up TPAR.

### How do I choose which payments appear?

Set rules by contact group, expense account or both. You can have up to 12 rules.

### When can't I lodge the TPAR from Xero?

Not if the organisation is in a trial, the report has overseas payees, it is a nil TPAR or it has more than 250 contacts. Export in ATO format and lodge in the ATO Online Business Portal.

## Sources

- https://central.xero.com/0/article/The-Taxable-Payments-Annual-Report
- https://central.xero.com/0/article/About-the-Taxable-Payments-Annual-Report-TPAR
- https://www.xero.com/au/guides/tpar-compliance/

### Also confirmed by

- ATO TPAR page, due 28 August, 2026: https://www.ato.gov.au/businesses-and-organisations/preparing-lodging-and-paying/reports-and-returns/taxable-payments-annual-report

Source: https://www.pulsify.tech/how-to/report-contractor-payments-for-tpar-in-xero/ (last checked 2026-10-19)