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New ATO pre-fill data makes tax time easier for contractors

Australian Taxation Office

The Australian Taxation Office (ATO) is making it easier for contractors to get their tax right, with expanded pre-fill services rolling out for Tax Time 2026.

For the first time, approximately $21 billion in payments made to contractors reported through the Taxable Payments Annual Report (TPAR) will automatically appear as pre-filled income in eligible tax returns, helping 700,000 sole traders and individuals in business save time, reduce mistakes and lodge with greater confidence.

ATO Assistant Commissioner Tony Goding said the changes are part of the ATO's continued investment in digital services to make tax easier to manage while supporting a level playing field for honest businesses.

‘Pre-fill has transformed the experience for employees and investors over many years, and we're now expanding those benefits for contractors.

‘By automatically bringing reported information into tax returns, we're helping people spend less time on paperwork and more time running their business.

‘The same data also helps us identify when income has been left out of a tax return, whether that's an honest mistake or a deliberate attempt to under-report earnings,’ Mr Goding said.

The new pre-fill data will include payments reported through the TPAR, covering industries such as building and construction, courier and road freight services, cleaning, information technology, and security, investigation and surveillance.

Lodge after 28 August for the best experience

The ATO is encouraging contractors to wait until after 28 August before lodging.

Most businesses required to submit a TPAR have until 28 August each year to report payments to the ATO. As a result, much of the new pre-fill information will only be available from late August.

‘Waiting until after 28 August gives you the best opportunity to access complete pre-fill information and reduces the likelihood of needing to amend your return later,’ Mr Goding said.

No place for hidden income

While pre-fill will make reporting easier, contractors should verify their pre-fill information against their own records and ensure they declare all their business income, including income not reported through TPAR.

‘Pre-fill is designed to make it easier to do the right thing, but it is not a complete record of all business income.

‘Whether you're paid through a platform, invoice private clients, or receive cash for work, you must declare all income you've earned. Leaving income out of your tax return doesn’t make it invisible to the ATO,’ Mr Goding said.

Contractors can update pre-filled information where it doesn't reflect their circumstances, however they should have records to support any changes.

‘If you change a pre-filled amount, you will need to provide a reason and should have documentation to substantiate it,’ Mr Goding said.

The ATO continues to use a wide range of data sources to identify omitted income and detect businesses operating outside the tax system.

‘Most contractors do the right thing and report what they earn. But those who deliberately hide income, operate off the books or under-report earnings should know the ATO is getting a clearer picture of their income than ever before.

‘We estimate more than $1 billion in TPAR payments could be omitted or under-reported this year. This is shadow economy behaviour. It cheats the system, disadvantages honest businesses and deprives the community of funding for essential services.

‘Leaving income out of your tax return doesn’t make it disappear. We use a wide range of data and sophisticated analytics to detect businesses that aren’t meeting their obligations.

‘We’re making tax easier for honest businesses and harder for those who deliberately try to avoid paying the right amount of tax,’ Mr Goding said.

The ATO estimates around $25 billion in tax is lost to shadow economy behaviour each year. 

Good records still matter

The ATO emphasises that expanded pre-fill does not replace the need for good record keeping.

Taxpayers should continue to maintain accurate records of all income and expenses throughout the year and ensure any income not captured through TPAR is included in their return. Taxpayers should also check their pre-fill information before lodging and if in doubt, speak with their registered tax professional.

Notes to journalists

  • If contractors need to adjust their pre-filled information, they or their registered tax professional will need to explain the reason for their adjustment.  
  • Contractors who have already lodged their tax return and identify omitted income can make a self-amendment to correct their return.
  • TPAR payments are reported on a cash basis. If contractors use accrual accounting, their payment amounts and timing may not match their pre-filled TPAR data.
  • ATO Assistant Commissioner Tony Goding is available for interviews on request.
  • A high-resolution headshot of ATO Assistant Commissioner Tony Goding is available from the ATO media centre.
  • Media grabs of ATO Assistant Commissioner Tony Goding discussing the shadow economy are available from the ATO media centre.
  • ATO stock footage and images are available for use in news bulletins from our media centre.    

Contact details:

[email protected] | 02 6216 1901