We appreciate the fact that the long hours and physical demands associated with the trades often mean bookkeeping and administration don't get the attention they deserve. While GST, BAS and tax payments often represent some of the largest financial obligations for a business, many tradespeople struggle to manage their tax affairs.
We understand the pitfalls and can help you with everything you need including your business structure, software selection, bookkeeping, Quarterly BAS and Annual Tax Return.
We are not your average accounting firm that just keeps the 'score'. Our mission is to help you grow your business.
If you work in the building industry, either as a tradesman, foreman, apprentice or labourer, some of the tax deductions you may be able to claim on your personal tax return are:
The cost of buying meals when you work overtime, provided you have been paid an allowance by your employer (you can claim for your meals without having to keep any receipts, provided you can show how you have calculated the amount you spent)
The cost of meals and incidental expenses when you are required to stay away from home overnight for work (if you receive an allowance from your employer, you can claim the full amount of that allowance provided it is shown on your PAYG payment summary). If you didn’t receive an allowance, you should keep receipts to prove the amount you have spent on all meals and accommodation
The cost of parking, tolls, taxis and public transport if you are required to travel to attend seminars, meetings and training courses not held at your usual place of work or to travel between job sites
The cost of using your own car for work, including travel to attend meetings, attend training courses, pick up supplies and driving between or around job sites (to claim for car costs it is usually best to keep a diary record of the number of kilometres you travel during the year for work purposes and then we can calculate the amount of your tax deduction at the end of the year). You can claim the cost of using your own car to travel to and from work, BUT only if you are required to carry bulky tools and equipment for your work AND there is no secure area to leave these items on site overnight
The cost of buying uniforms (including shirts, pants, skirts, jackets, jumpers provided the uniforms have the business’s logo on it)
The cost of laundry, dry cleaning or repairs of your uniforms
The cost of buying sun protection items (including sunscreen, hats, sunglasses and sun-protection shirts or jackets)
The cost of buying other protective equipment that is not supplied by your employer (including overalls, gloves, goggles, masks, harnesses, helmets, steel-capped boots, gum boots, high visibility vests and winter outdoor jackets)
The cost of work-related short training courses (for example first aid, OH&S, truck and heavy equipment driving, management, staff supervision which are not run by a University or TAFE. You can claim for the cost of any course fees, books, stationery, internet connection, telephone calls, tools or equipment and travelling to and from the course. You can also claim any accommodation and meal expenses you have to pay if you are required to stay away overnight to attend your course
The cost of self-education courses run by a University (not including HECS/HELP) or TAFE (for example Cert III trade courses or Cert IV Building and Construction courses). If you are studying you can also claim for the cost of books, stationery, equipment and travel required for your course
The cost of buying and repairing equipment you use at work (including tools, electronic organisers, laptop computers and mobile phones)
The cost of any materials or supplies that you buy for use at work (for example safety gear, first aid equipment, backpack or belt bag)
The cost of stationery, diary, log book, work bag or briefcase
The cost of annual memberships or union fees (for example CFMEU fees)
The cost of renewing machinery operating licences and tickets that are required for your work, but not including your normal drivers licence
The cost of work-related books, magazines and journals
The cost of work-related mobile or home telephone calls and rental (you should keep a diary record of the number of phone calls you make for work for one month and then we can use that to estimate your usage for the whole year)
The cost of work-related internet connection fees (you can only claim the proportion of your monthly fees that relate to work use, which could include emailing, research relating to your job and research for your training courses)
The amount of any donations to registered charities (as long as you haven’t received anything in return for your donation, such as raffle tickets or novelty items)
The cost of bank fees charged on any investment accounts
The cost of income protection or sickness and accident insurance premiums (this type of insurance covers you if you hurt yourself (including when you are not at work) or become sick and you are unable to work. It will pay you your normal wage until you are fit to return to work .
Your tax agent fees (the amount you pay to your accountant to prepare your tax return each year)
The cost of travelling to see your tax agent
We suggest that you keep receipts for all purchases that are work related, even if they are not listed above. That way, when we prepare your tax return, we can decide whether you are allowed to claim a tax deduction for them or not.
If you would like us to prepare your tax return for you to ensure you maximise your claims this year, please contact us at firstname.lastname@example.org or call us at 0425 365 558.
As specialists in the building industry we offer you an extensive range of accounting, taxation and business coaching services that are tailored to your needs. Some of our services include:
Start-Up Business Advice for Builders
Advice and Assistance with the Establishment of Your Business Structure
Tax Registrations including ABN, TFN, GST, Work Cover etc.
Preparation of Cash Flow Forecasts and Profit Projections
Accounting Software Selection and Training – Bookkeeping, Invoicing, Quotes & Payroll
Preparation and Analysis of Financial Statements
Preparation of Finance Applications
Bookkeeping and Payroll Services
Tax Planning Strategies
Vehicle & Equipment Finance (Chattel Mortgage & Lease)
Monitoring and Controlling Labour and Sub-Contractor Costs
Advice & Assistance with Pricing and Claiming Motor Vehicle Expenses
Recession Survival Strategies