The ATO says $21 billion in contractor payments will now pre-fill automatically. Assistant Commissioner Tony Goding explains what that changes.
Contractors lodging their tax return this year may notice a change: a large chunk of their income could already be filled in before they start.
The Australian Taxation Office is expanding its pre-fill services for Tax Time 2026, with around $21 billion in payments made to contractors, reported through the Taxable Payments Annual Report, set to automatically appear as pre-filled income in eligible tax returns. The ATO estimates the change will affect approximately 700,000 sole traders and individuals in business.
ATO Assistant Commissioner Tony Goding said the update builds on pre-fill functionality that’s existed for employees and investors for years. “Pre-fill has transformed the experience for employees and investors over many years, and we’re now expanding those benefits for contractors,” Goding said. “By automatically bringing reported information into tax returns, we’re helping people spend less time on paperwork and more time running their business.”
The pre-fill data covers payments reported through the TPAR, spanning industries including building and construction, courier and road freight services, cleaning, information technology, and security, investigation and surveillance.
Why timing matters
Businesses required to submit a TPAR generally have until 28 August each year to report those payments to the ATO. That means much of the new pre-fill data won’t be available until after that date, and the ATO is recommending contractors hold off lodging until then.
“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,” Goding said.
What pre-fill won’t catch
The ATO has been clear that pre-fill isn’t a complete picture of a contractor’s income, and the responsibility to report everything still sits with the taxpayer. Contractors are being urged to check pre-filled figures against their own records before lodging.
“Pre-fill is designed to make it easier to do the right thing, but it is not a complete record of all business income,” Goding said. “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.”
Contractors can amend pre-filled figures if they don’t match their own circumstances, but the ATO says any changes need to be backed up. “If you change a pre-filled amount, you will need to provide a reason and should have documentation to substantiate it,” Goding said.
The other side of the data
The same information the ATO is using to simplify tax time is also being used to identify gaps. Goding said the agency’s ability to detect underreported income is improving as more data comes in.
“Most contractors do the right thing and report what they earn,” Goding said. “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.”
The ATO estimates more than $1 billion in TPAR payments could be omitted or underreported this year, part of a broader shadow economy problem the agency estimates costs around $25 billion in lost tax annually. “This is shadow economy behaviour,” Goding said. “It cheats the system, disadvantages honest businesses and deprives the community of funding for essential services.”
Good records still matter
Despite the expanded automation, the ATO is stressing that pre-fill doesn’t remove the need for contractors to keep their own accurate records throughout the year, including for income not captured through TPAR. Taxpayers are being encouraged to check their pre-fill information carefully before lodging and to speak with a registered tax professional if anything looks off.
“We’re making tax easier for honest businesses and harder for those who deliberately try to avoid paying the right amount of tax,” Goding said.
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