ATO Pre-Fills Contractor Payments This Tax Time — What to Check

From tax time 2026, the ATO is pre-filling ~$21 billion of contractor payments into tax returns. Here's who's affected and what to check before you lodge.

Quick summary

The ATO is now pre-filling around $21 billion in contractor payments directly into tax returns, using data from Taxable Payments Annual Reports (TPAR).
This affects about 700,000 sole traders and contractors in industries like construction, cleaning, courier and road freight, IT, and security.
Businesses that pay these contractors must still lodge their TPAR by 28 August, and it's now electronic lodgment only — no more paper forms.
If you're a contractor, it pays to wait until after 28 August to lodge your own return, so the pre-filled data is complete.

If you're a contractor or sole trader in a TPAR industry

If you work as a subcontractor in building and construction, cleaning, courier or road freight, IT, or security/surveillance services, this affects you directly.

Here's what's changing: businesses that pay you for your services already have to report those payments to the ATO each year through a TPAR. Starting from tax time 2026, the ATO is using that data to automatically fill in your income details when you prepare your tax return — similar to how your bank interest or PAYG income already pre-fills today.

Why this matters:

It reduces manual entry and should mean fewer mistakes putting income in the wrong label (TPAR amounts pre-fill with GST excluded, matching how your return needs it reported).
It also makes it much harder for unreported cash-in-hand income to slip through unnoticed — the ATO already estimates around $1 billion in TPAR-reportable payments go omitted or under-reported each year, part of a broader $25 billion annual shadow economy tax gap.

Example: say you're a painter who did work for three different building companies over the year, totalling $45,000. Each of those companies reports what they paid you in their TPAR by 28 August. When you then lodge your own return, that $45,000 should already appear — you just need to check it against your own invoices and add anything not covered (e.g. private clients who paid you directly, or cash jobs).

What you should do:

Don't rush to lodge in early July — most TPAR data isn't fully available until after 28 August, once the businesses that paid you have lodged their own reports.
When you do lodge, check the pre-filled amount against your own records (invoices, bank statements).
If something's missing or wrong, you can adjust it and add a reason code — but keep documentation to support the change.
Still declare all your income, including anything not captured by TPAR (private customers, cash payments) — pre-fill only covers what businesses have reported.

If you're a business that pays contractors

Skip this section if you don't hire contractors, subcontractors or service providers in the industries above.

If your business pays contractors for construction, cleaning, courier/road freight, IT, or security services, you likely have a TPAR obligation of your own — separate from your regular tax return.

Key points:

Your TPAR is due by 28 August each year.
Paper lodgment is no longer accepted — TPARs must now be lodged through ATO online services, SBR-enabled software, or a registered tax agent (like us).
If you genuinely don't need to lodge this year, you can submit a non-lodgment advice instead of ignoring the requirement.
Getting this right and on time matters more now than ever, since it directly feeds the pre-fill your contractors will rely on — errors or late lodgment on your end can cause headaches for them at tax time.

Bottom line: the more accurate and timely your TPAR, the smoother tax time is for everyone in your supply chain.

What you should do

Contractors: hold off lodging until after 28 August, then cross-check pre-filled income against your own records before submitting.
Businesses paying contractors: confirm your TPAR obligation, lodge electronically by 28 August, and keep clean records of all contractor payments year-round.
Everyone: keep invoices, receipts and bank statements — pre-fill is a starting point, not a substitute for good record-keeping.
Talk to us if you're unsure whether TPAR applies to you, either as a payer or as a contractor receiving payments.

Get in touch with Jannar Dang & Associates if you'd like us to check your pre-filled data or confirm your TPAR obligations before you lodge.

Jannar Dang & Associates Pty Ltd — Tax agent & CPA Australia Member

Office address: 12/76-80 John Street, Cabramatta NSW 2166
Phone: (02) 9794 8800 | Email: jannardang@jannardang.com.au

This article contains general information only and does not take into account your personal circumstances. It is not a substitute for professional advice. Please contact Jannar Dang & Associates for further advice.

Official sources (ATO):

New TPAR pre-fill for tax time 2026 → https://www.ato.gov.au/businesses-and-organisations/small-business-newsroom/new-tpar-pre-fill-for-tax-time-2026
New ATO pre-fill data makes tax time easier for contractors → https://www.ato.gov.au/media-centre/new-ato-pre-fill-data-makes-tax-time-easier-for-contractors
Final reminder: TPAR due 28 August → https://www.ato.gov.au/businesses-and-organisations/small-business-newsroom/final-reminder-tpar-due-28-august