What vehicle deductions can tradies claim?

Tradies can claim deductions for work utes, vans, and other vehicles used for work purposes. The two main methods are the logbook method (actual business use percentage) and the cents per kilometre method (up to 5,000km). For vehicles over $30,000, the instant asset write-off or depreciation rules apply. We help you choose the most tax-effective method.

Do I need to lodge a Taxable Payments Annual Report (TPAR)?

Yes, if you are in the building and construction industry and pay contractors to provide services on your behalf, you must lodge a TPAR with the ATO each year. This report details payments made to contractors and helps the ATO ensure contractors are declaring their income. We manage this obligation on your behalf.

Should I operate as a sole trader or company?

For most tradies starting out, a sole trader structure is simplest. However, once your income exceeds around $80,000–$100,000, a company structure (taxed at 25%) can offer significant savings compared to personal marginal rates of up to 47%. Asset protection is also a key consideration for tradies with significant tools and equipment.

What is the difference between a contractor and an employee?

The ATO uses a multi-factor test to determine whether a worker is a contractor or employee. Key factors include control over how work is done, ability to subcontract, provision of tools and equipment, and risk of loss. Misclassifying employees as contractors (sham contracting) can result in significant ATO penalties and Fair Work liability.

How does GST work on construction contracts?

GST applies to most construction services at 10%. For progress claim billing, GST is payable when the invoice is issued or payment is received (whichever is earlier). Retention amounts have specific GST treatment. We ensure your GST is correctly handled across all contract types.

Tradesman Builder Construction Accountant Melbourne

Running a trade or construction business comes with unique financial challenges — fluctuating cash flow, complex GST on building contracts, vehicle and equipment deductions, and the ever-present question of contractor versus employee classification. At Elite Accounting Solutions, we have spent years helping tradies, builders, and construction companies across Melbourne stay compliant, reduce tax, and build lasting profitability.

Whether you're a sole-trader electrician, a plumbing company with a team of apprentices, a building company managing multi-million dollar construction projects, or a construction group with complex WIP accounting needs — we have the industry knowledge to support you at every stage.

Who We Help

Sole trader tradies — electricians, plumbers, carpenters, painters, tilers
Building companies and residential builders
Commercial construction companies and project managers
Civil construction and infrastructure contractors
Subcontractors and labour hire businesses
Renovation and fit-out companies
Landscaping and earthmoving businesses
Demolition and excavation contractors
Apprentices and owner-operators starting out
Construction groups with multiple entities and complex structures

Services for Tradies & Builders

Business structure advice — sole trader, company, or trust
Contractor vs employee classification — avoiding ATO sham contracting issues
Vehicle and equipment deductions — Div 43, Div 40, instant asset write-off
GST on construction contracts, retention amounts, and progress claims
BAS preparation and lodgement — monthly, quarterly, or annual
Cash flow forecasting and job costing analysis
Payroll, STP, and superannuation compliance for employees and subcontractors
PAYG withholding and taxable payments annual report (TPAR)
Tax planning and minimisation strategies
Business growth advice — expanding your team or taking on larger projects

Construction Company Accounting

Larger construction companies face a different set of accounting challenges compared to sole-trader tradies. We have extensive experience with the financial complexities of building and construction companies, including:

Work-in-progress (WIP) accounting — recognising revenue and costs correctly across long-term contracts
Progress claim billing and retention money — GST treatment and cash flow management
Payroll tax obligations — when your wages bill triggers payroll tax in Victoria
Multi-entity group structures — operating company, holding company, and trust arrangements
Construction industry trust accounts — compliance with the Security of Payment Act
Plant and equipment depreciation — managing large asset registers
Subcontractor management — TPAR, ABN withholding, and sham contracting risks
Tender and project profitability analysis
Business sale and succession planning for construction businesses

WIP Accounting — Getting It Right

Work-in-progress (WIP) accounting is one of the most misunderstood areas for construction businesses. Recognising revenue too early or too late can distort your profit, affect your tax position, and create cash flow problems. We help construction companies implement the right WIP accounting methodology — whether that's the percentage-of-completion method or the completed-contract method — to ensure your financials accurately reflect the true state of your business.

Taxable Payments Annual Report (TPAR)

Building and construction businesses are required to lodge a Taxable Payments Annual Report (TPAR) with the ATO each year, reporting payments made to contractors. Our team manages this obligation on your behalf, ensuring it's lodged accurately and on time — keeping you on the right side of the ATO.

Vehicle & Equipment Deductions

Tradies and builders have some of the best deduction opportunities available — work utes, tools, trailers, heavy equipment, and protective gear. We ensure you're maximising every legitimate deduction available to you, including the instant asset write-off for eligible equipment purchases and the correct depreciation treatment for plant and machinery.

Related Specialisations

Tradies and builders often have needs that overlap with these specialist areas:

House Flipping & Development

Builder-developers who flip or develop properties need specialist advice on CGT, GST, and the margin scheme.

Property Investment

Many tradies invest in property — we provide integrated advice on negative gearing, depreciation, and CGT.

Franchise

Trade franchise operators (e.g. Jim's Group, Hire A Hubby) face both franchise and trade-specific accounting obligations.

Stop leaving money on the table. Book a free consultation today and let us put more of your hard-earned income back in your pocket — whether you're a sole-trader tradie or a multi-million dollar construction company.

Why Choose Elite Accounting Solutions

Industry Expertise

Over 40 years of niche industry experience means we understand the unique tax, compliance, and business pressures your industry faces.

Personalised Service

We get to know your business personally. No call centres, no juniors — you deal directly with experienced accountants who care about your outcomes.

Proactive Guidance

We don't just do compliance — we proactively identify tax-saving opportunities and strategies specific to your industry throughout the year.

Clear Communication

We explain everything in plain English. No jargon, no surprises — just clear advice so you can make confident, informed financial decisions.

Tradesman, Builder & Construction Accountant