Tradies Accountant: Why Tradies Need a Different Kind of Accountant

Formwork, plastering, or installing plumbing is one thing. Navigating the tax maze as a tradie? That’s another story. That’s why hiring a tradies accountant might be just what you need.

As a tradie, you face a unique set of financial headaches, including:

• High tax bills: You might be paying more tax than you should if no one’s checking your deductions.
• Confusion over ATO reporting: Are you paying the correct quarterly PAYG tax instalments? What about super and GST?
• Subcontractor payments & TPAR reporting. Are you lodging your TPAR reports correctly? Getting this right is super important for tradies.
• Cash flow headaches. Suppliers are chasing payments, but your clients take weeks (or months) to pay your invoices.

Here’s the truth: a generalist accountant won’t cut it.

As a tradie, you need someone who knows the rules, the loopholes, and the tax deductions for your industry. Someone who understands how a trade business actually runs. Without that, you might be paying too much tax, missing opportunities, and slowing your business growth.

Tax For Tradies: The Hidden Traps

Tradies don’t just deal with tax. There are lots of things that can catch you out if you don’t know the rules. 

Here’s where a tradies accountant can help:

1. GST on materials vs labour. Some tradies charge GST on labour but forget about materials, or vice versa. If you get it wrong, you’ll either underpay the ATO or overcharge your clients. Neither is good for your business.

2. Subcontractor reporting (TPAR). If you pay subcontractors, you need to lodge a Taxable Payments Annual Report (TPAR). The ATO uses this to match income declared by your subcontractors. If you don’t lodge this, or provide incorrect information, you risk ATO audits, penalties, and headaches you don’t need.

3. Vehicle and fuel expenses. Your ute is your workhorse. The ATO knows it too. Here’s a few things to consider:

• Do you need a logbook, or can you use cents-per-kilometre?
• What about rego, insurance, repairs, and servicing?
• The rules for utes and vans (classified as commercial vehicles) are different from family sedans.

4. Tools and equipment write-offs. That $500 drill? Deductible. That $18,000 excavator? Eligible for instant asset write-off (depending on annual thresholds which change year to year). Tools and gear are often the biggest deductions for tradies, so it’s important to keep track of them all.

5. Business structure issues. Many tradies start as sole traders, but as the business grows, that structure may cost you more in tax, and open you up to potential lawsuits. A company or trust can reduce your tax, protect your assets, and help you plan for the future. A tradies accountant knows when it’s time to switch.

When it comes to tax for tradies, it’s important to make sure you’re not overpaying (or underpaying) the ATO.

What a Tradies Accountant Actually Does (Besides Lodging Returns)

A lot of tradies think accountants are just there to lodge tax returns. That’s like using a power drill to stir paint — it works, but there’s a much better way.

Here’s what a tradies accountant does:

1. Minimises tax legally: They know the deductions tradies often miss: tools, union fees, protective gear, even part of your phone and internet, or home office expenses. They make sure you’re claiming everything you’re entitled to.

2. Manages BAS, payroll, and super: If you’ve got staff or subcontractors, compliance is non-negotiable. A tradies accountant keeps the ATO off your back. They can prepare and manage your staff payroll, super, and TPAR reporting.

3. Helps with quoting jobs: Numbers aren’t just for tax time. They show you if your quotes are profitable and whether you’ve got the cash to pay suppliers before the next invoice comes in.

4. Advises on the right business structure: Sole trader, partnership, company, or trust — each has pros and cons. A tradies accountant helps set you up for both tax savings and asset protection.

5. Keeps you compliant all year round: Working with a tradies accountant means there’s no last-minute panic in June. Just steady, proactive management of your finances.

It’s about more than tax. It’s like plumbing: when the pipes are set up right, everything flows smoothly.

How a Tradies Accountant Saves You Money

Hiring a tradies accountant isn’t an expense, it’s an investment. When done right, it pays for itself many times over.

Here’s how:

• Tax planning before June 30 (not after). Most accountants show up at tax time, crunch the numbers, and hand you a bill. A tradies accountant plans ahead, so you can take action to reduce your tax before the financial year ends.
• Industry-specific deductions. From tools to safety gear, travel to union fees, there are deductions only tradies can claim. A specialist tradies accountant knows them all and helps you claim all legal tax deductions.
• Avoiding penalties and late fees. Missing BAS, PAYG, or super deadlines doesn’t just stress you out — it costs money. A tradies accountant keeps you compliant and penalty-free.
• Improving cash flow. It’s not just about tax. It’s about money in the bank. Smarter invoicing systems, debtor management, and expense tracking mean you’re never left wondering why there’s nothing left at the end of the month.

That’s the power of working with a specialist tradies accountant.

Signs You’ve Outgrown Your Current Accountant

Not every accountant is the right fit for a growing trade business. If you’re noticing any of these signs, it might be time to change accountants:

1. They don’t understand subcontractors or TPAR. If you’re the one explaining how you pay your subcontractors, you’ve probably outgrown them. If they’re not proactive with lodging your TPAR reports, it might be time to look elsewhere.

2. They’re not specialists in trades. Every industry has its quirks. If your accountant doesn’t know the trade industry inside out, they might be missing things.

3. You’re always the one asking questions. A good accountant calls you with ideas and takes initiative, not the other way around.

4. They’re slow to respond. If it takes days or weeks to get a reply, it slows you down. Tradies move fast, your accountant should too.

5. You’re still confused about your money. If you leave meetings more confused than when you went in, that’s a red flag. A tradies accountant will explain things in simple language, not complex tax jargon.

An accountant should be a partner in your business, not just another bill to pay.

Tax For Tradies: What Can You Claim On Tax?

Tradies have access to a wide range of tax deductions, but only if you know what to claim. If you miss them, you’re effectively donating money to the ATO.

Here’s what you can usually claim:

• Uniforms & laundry. Protective clothing, branded uniforms, and the cost of cleaning them.
• Car & travel expenses. Ute costs, fuel, rego, insurance, and servicing. Depending on your setup, you’ll either need a logbook or you can use the cents-per-kilometre method. Remember — utes and vans are treated differently to cars, especially when it comes to FBT (if you’re operating through a company).
• Tools & equipment. Items under $300 can be claimed outright. Larger purchases (over $300) are depreciated or may qualify for the instant asset write-off.
• Industry memberships. Union fees, trade associations, and relevant subscriptions.
• Business insurance. Public liability, income protection, and other insurance cover directly tied to your work.
• Phone & internet. The business portion of calls, internet, and equipment (e.g. laptops)
• Staff & subcontractors. Wages, super, and subcontractor costs
• Rent & utilities. If you rent a workshop or office, those expenses are deductible. If you work from home, a portion of your home office costs may also be deductible.
• Other business expenses. Anything used to generate income: stationery, marketing, accounting fees, travel, and industry training or courses.

Important: These deductions aren’t a free-for-all. The ATO is strict, especially with vehicle, travel, and training claims. A tradies accountant makes sure you claim what you’re entitled to — without crossing the line.

Tax Planning For Tradies – How Does It Work?

1. Prepay expenses

Insurance, rent, or subscriptions can be prepaid up to 12 months in advance. This lets you bring forward deductions and manage taxable income.

2. Instant asset write-off

Tools, equipment, or even a new ute may qualify for immediate deduction (subject to ATO thresholds). A specialist tradies accountant ensures you maximise this correctly.

3. Top-up super contributions

Salary sacrifice or voluntary super contributions can help reduce your taxable income and grow retirement savings at the same time.

4. Write off bad debts

If a client won’t pay, consider writing off the debt before year’s end so you’re not taxed on money you’ll never see.

5. Income splitting with family members

Employing a spouse or adult child who works in the business (admin, scheduling, bookkeeping) spreads your business income across lower tax brackets. Note: it must be genuine work at market rates.

FAQs – Tradies Accountant

Do tradies need an accountant, or can they DIY?

If you’re a sole trader or subcontractor with minimal invoices a year, maybe DIY works for now. But once you’ve got staff, subcontractors, or are registered for GST, the risks of DIY outweigh the cost savings. Missing tax deductions can cost more than a year of professional fees. Plus, you have to measure the time you spend on DIY, and whether it’s more cost-effective to hire a tradies accountant.

What’s the best business structure for a tradie?

There’s no one-size-fits-all. A sole trader setup is simple but exposes your personal assets. Companies can save tax and offer protection, but they cost more to run. Trusts can be powerful for family businesses. The right structure depends on your business size, goals, and risk exposure.

Can you help with both tax and bookkeeping?

Yes we can! That’s the ideal setup. Bookkeeping keeps the day-to-day numbers in order. Accounting focuses on tax planning and strategy. When one firm handles both, nothing falls through the cracks. We’re a Perth-based accounting firm that specialises in trade businesses, but we have clients all over Australia.

What’s the benefit of working with a tradies accountant?

We know the rules that matter to you: GST, TPAR reporting, vehicle deductions, and tool write-offs. You don’t need to spend time explaining your business — we already get it. That means better tax and business advice, fewer mistakes, and more money in your pocket.

Ready To Hire a Tradies Accountant?

Without a specialist tradies accountant, you’re left guessing. You might be overpaying tax. You might be missing deductions. You’re probably losing hours on paperwork. Worst of all, you might be stressed out about your cash flow and paying your staff.

With the right accountant, it’s different. You’ve got clarity on your numbers. You know where your money is going. You can quote with confidence, hire at the right time, and grow without being stressed.

You don’t have to wrestle with GST, TPAR, or depreciation schedules. You can focus on the job. And your accountant can focus on the numbers.

If you’re an Australian tradie ready to take control of your tax, your deductions, and your cash flow, let’s chat. Book a free consultation today.