Construction & Trades
Being specialist Accountants for the construction and trade industry, we understand the business challenges faced by builders, contractors, tradesmen and subcontractors. Whether you’re managing complex projects, dealing with fluctuating cash flow, or navigating compliance with industry-specific tax obligations, our accounting and advisory services are designed to help you keep your business in check whilst maximising your profitability.
Every construction and trade business has its own set of challenges. From simple to complex matters, we can tailor our business services to suit your needs
We’ll handle all of your tax compliance needs relevant to your business structure (sole trader, company, partnership, trust).
We also manage BAS returns, Payroll Tax returns, Fringe Benefits Tax returns and ATO audits.
Our comprehensive suite of tax and accounting services are tailored to meet your needs, from income tax returns and tax planning and advice to financial reports, business structures, family trusts and self-managed super funds.
Tax Advice & Compliance
We’ll handle all of your tax compliance needs and will work proactively with you to help implement legitimate tax planning strategies
Accounting & Business Reporting
Use our simple, graphical and well presented monthly reporting pack to gain insights into the profitability and key drivers in your business in real-time
Business structuring & setup
Structuring a construction project is not a simple exercise and should consider a myriad of factors including asset protection, income distribution and succession planning
Contactor arrangements
Those in construction need to be cautious of PAYG, GST, Payroll Tax and WorkCover issues when incorrectly structuring contractor arrangements
Project Costing & Job Tracking
Advice on managing job costing and tracking expenses, ensuring project profitability is accurately measured and overheads are appropriately allocated
Subcontractor Payment Reporting (TPAR)
Taxable Payments Annual Reporting (TPAR), including correctly reporting contractor payments to the ATO
Work in Progress (WIP) Accounting
Correctly accounting for work in progress to manage your tax liability based on the stage of project completion
Our clients consistently benefit from our proactive approach, industry experience and commitment to delivering results. We pride ourselves on building long-term relationships based on trust, integrity and a deep commitment to your success.
Personal Services Income & Personal Services Business
The Australian Taxation Office (ATO) is tightening its focus on tradesman and subcontractors under the current Personal Services Income (PSI) rules to ensure compliance, these rules were designed to prevent income splitting and tax avoidance.
The ATO is examining business structures and practices closely, particularly where there are arrangements that appear to divert income away from the individual providing the services to reduce tax liabilities. This includes arrangements such as service agreements, trusts, or companies that seem to be set up primarily for tax minimization rather than legitimate business purposes.
Red Flags for the ATO: The ATO is especially alert to situations where:
- The business has complex structures involving multiple entities or service arrangements.
- Income is split between family members or associates who are not actively involved in the business.
- The majority of the income is derived from one individual’s personal services rather than from a diversified team or other business assets.
Why you need to speak with your Accountant
Navigating the PSI rules and ensuring compliance can be complex. You should seek advice from a qualified tax accountant to:
- Assess whether the PSI rules applies to your income.
- Understand how to correctly structure your business to minimize the risk of non-compliance.
- Ensure you are claiming legitimate deductions and meeting all ATO requirements.
Navigating the complex distinction between contractors and employees is critical for construction businesses. We provide guidance to ensure correct classification, avoiding costly mistakes with superannuation, workers’ compensation, PAYG withholding, GST, leave entitlements and other payroll related obligations.
Given the ATO’s intensified scrutiny, now is the time for businesses in the construction industry to review their current tax strategies and ensure they are compliant with PSI rules. A consultation with an experienced tax accountant can help you avoid costly penalties and ATO scrutiny.
Contact us
Get in touch with us to discuss how the PSI rules and other intricate tax rules impacts your business and the best strategies to manage your tax obligations effectively.
