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8 ESSENTIAL TIPS |
Stop leaving money on the worksite.Every year, Perth tradies and contractors overpay tax because they don’t claim what they’re entitled to, miss key deadlines, or are running the wrong business structure. This guide gives you eight practical, no-jargon tips to get the most from tax time — and shows you how North Coast Accounting helps you keep more of what you earn. |
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$900 Tax saving from 2026–27 rate cut alone |
$32.5K New concessional super cap 2026–27 |
$20K Instant asset write-off — extended again |
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⚠️ IMPORTANT NOTICE This blog provides general information only and does not constitute financial or tax advice. Every tradie’s situation is different. The tips below are a starting point — book a consultation with North Coast Accounting for advice tailored to your specific circumstances. |
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TIP 01 |
KNOW YOUR BUSINESS STRUCTURESole trader • Company • Trust — which one is right for you? |
Most Perth tradies start as sole traders. Simple and cheap to set up. But here’s the problem: as a sole trader, every dollar of profit is taxed at your personal marginal rate — up to 45%. A company pays just 25%. That gap is real money.
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👷 Sole Trader Reality Check Net profit: $150,000 Tax payable: ~$43,700 Effective rate: ~29% |
🏢 Company Structure Same profit: $150,000 Company tax: $37,500 (25%) Potential saving: ~$6,200 |
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💡 NORTH COAST ACCOUNTING TIP If your net profit is consistently above $100,000–$120,000, a company or trust structure almost certainly saves you more in tax than it costs to run. North Coast Accounting models both options with your actual numbers — usually in one meeting. |
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TIP 02 |
KEEP A VEHICLE LOGBOOKMost tradies drive 85–95% for work. Without a logbook, the ATO won’t believe you. |
Your ute or van is almost certainly your largest single tax deduction — and the one the ATO scrutinises hardest. Without a logbook, you’re capped at the cents-per-kilometre method, limited to just 5,000 km. A Wanneroo tradie driving between builds, suppliers in Malaga, and Joondalup Hardware every day blows through that in months.
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❌ Without a Logbook Cents per km method Capped at 5,000 km Max claim: ~$4,250 |
✓ With a Logbook (90% work use) 20,000 km driven x 90% work use 18,000 km deductible PLUS all running costs claimed |
How to start: Drive normally for 12 consecutive weeks, recording every trip — date, odometer start/end, destination, and work purpose. That one-time effort is valid for 5 years. North Coast Accounting can recommend ATO-compliant logbook apps for your phone.
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⚠️ HOME-TO-WORKSITE TRAVEL IS NOT DEDUCTIBLE Driving from your home in Wanneroo or Clarkson to a regular worksite is private travel — even with a ute full of tools. Exception: if you move between genuinely different worksites each day. Talk to North Coast Accounting if your work pattern is mixed. |
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TIP 03 |
SUPER IS YOUR MOST POWERFUL TAX LEVERTaxed at 15% inside the fund vs up to 45% outside it. Do the maths. |
As a sole trader, nobody pays your super for you — but that’s actually an advantage. Personal super contributions you claim as a deduction are taxed at just 15% inside the fund, versus your marginal rate outside it. In 2026–27 the cap increased to $32,500.
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15% Tax rate on super contributions |
32.5K Concessional cap 2026–27 |
$2,200 Saving on $10K at 37% bracket |
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📅 30 JUNE DEADLINE — NOT 31 OCTOBER Contributions must land in your fund by 30 June. You must also lodge a Notice of Intent to Claim Deduction with your super fund BEFORE lodging your return. Miss either step and you lose the deduction for the entire year. |
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💡 CARRY-FORWARD SUPER — ARE YOU MISSING OUT? If your super balance is under $500,000 and you didn’t max out your cap in prior years (from 1 July 2018), you may contribute significantly more than $32,500 this year. North Coast Accounting checks every client’s carry-forward position as part of your tax return. |
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TIP 04 |
CLAIM EVERY DEDUCTION YOU'RE ENTITLED TOYou’d be surprised what’s claimable. You’d be more surprised what’s not. |
The golden rule: if an expense is directly related to earning your income and you have a receipt, it’s almost certainly deductible. Here’s a quick-reference guide to the most common tradie expenses:
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Expense |
Deductible? |
The Key Rule |
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Tools & equipment under $20,000 |
✅ Full |
Instant write-off — claim in full in year of purchase, use before 30 June |
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Work vehicle running costs |
✅ Work % |
Logbook method: claim your actual work-use % of ALL running costs |
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Hi-vis, PPE, safety gear |
✅ Full |
Occupation-specific or protective clothing — fully deductible |
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Trade licences & registrations |
✅ Full |
Builder’s registration, white card, contractor licences in WA |
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Income protection insurance |
✅ Full |
Personally-held premiums — fully deductible, critical for sole traders |
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Accounting & tax agent fees |
✅ Full |
North Coast Accounting’s fee for this return is deductible in the year you pay it |
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Phone & internet (work portion) |
⚠️ Partial |
Keep a 4-week representative sample. Most tradies: 60–80% work use |
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Home office hours (67c/hr) |
⚠️ Partial |
Keep an actual hours diary — ATO requires contemporaneous records |
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Subcontractor payments |
⚠️ TPAR |
Deductible, but must be reported via TPAR by 28 August each year |
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Plain work clothes / boots |
❌ No |
Generic clothing is never deductible even if worn only on site |
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Client meals & entertainment |
❌ No |
Generally not deductible. FBT may apply if provided to employees |
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Fines & ATO penalties |
❌ Never |
Speeding fines, SGC penalties — never deductible, ever |
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TIP 05 |
INSTANT ASSET WRITE-OFF — BUY SMART BEFORE 30 JUNEAssets under $20,000 written off immediately. Don’t miss the window. |
The $20,000 instant asset write-off has been extended again for 2025–26 and 2026–27. Eligible small businesses claim the full cost of any asset under $20,000 as an immediate deduction in the year it’s purchased and first used — instead of depreciating it over several years.
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🔧 What Qualifies? ● Power tools, hand tools, compressors ● Work trailer (under $20,000) ● Scaffolding components ● Test and measure equipment ● Laptops or tablets for quoting ● Portable generators or lighting rigs ● Safety gear — higher cost items |
⏰ The Critical Rule The asset must be: ● Purchased, AND ● First used OR installed ready for use, ● Before 30 June — no exceptions Ordered but not yet delivered does NOT qualify. Buy it, use it. |
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TIP 06 |
LODGE YOUR TPAR — DON'T GET CAUGHT OUTPenalties up to $1,565. Most tradies who use subbies need to lodge this. |
The Taxable Payments Annual Report (TPAR) is the most missed obligation in WA construction and trades. If your business pays subcontractors for building, construction, cleaning, courier, IT, or security services — you must lodge a TPAR with the ATO by 28 August each year.
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📄 What to Report For Each Subcontractor |
🗓️ Due Date 28 August Each Year |
🚨 Penalty Up to $1,565 per failure |
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Full name / business name |
ABN |
Address |
Total gross paid (inc. GST) |
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💡 NORTH COAST ACCOUNTING HANDLES EVERY TPAR LODGEMENT Bring North Coast Accounting your full subcontractor list and we do the rest. Don’t wait until late August — allow two weeks of buffer to fix any missing ABNs before the deadline. |
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TIP 07 |
KEEP YOUR RECORDS ALL YEAR, EVERY YEARShoebox tax prep costs you money. Good records find you money. |
The ATO requires a minimum of 5 years of business records. But good record-keeping isn’t just about compliance — it’s how you find deductions you’d otherwise miss, and it’s your best protection if the ATO ever asks questions.
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✓ YOUR 2025–26 TAX TIME RECORDS CHECKLIST |
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✓ All invoices issued to clients — including any cash jobs |
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✓ Business bank statements for all accounts (12 months) |
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✓ Receipts for tools, materials, PPE, subscriptions, software |
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□ Vehicle logbook + 12 months of running cost receipts |
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□ Fuel receipts — especially important given WA fuel prices |
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□ Super fund statements + Notice of Intent to Claim Deduction |
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□ Subcontractor list for TPAR (name, ABN, address, amount paid) |
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□ Finance/loan statements for business equipment or vehicles |
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□ Income protection insurance invoices |
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□ Phone and internet bills with work-use notation |
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□ Any principal contractor agreements or signed contracts |
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□ Prior year return if you are new to North Coast Accounting |
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📱 GO DIGITAL — NORTH COAST ACCOUNTING RECOMMENDS XERO FOR TRADIES Cloud accounting software like Xero pulls in your bank transactions automatically, stores receipts, and makes BAS fast. North Coast Accounting can set you up and train you in a single session. Stop chasing receipts at tax time. |
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TIP 08 |
KNOW YOUR KEY DATES — DON'T PAY PENALTIESMissing a deadline doesn’t just cost money. It puts you on the ATO’s radar. |
Missing lodgement deadlines attracts automatic ATO penalties and flags your account for closer scrutiny. Put these dates in your phone now:
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Date |
Urgent? |
What’s Due |
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30 June 2026 |
🔴 URGENT |
End of year — super contributions must be in your fund TODAY for 2025–26 deduction. Last day to prepay deductible expenses. |
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28 July 2026 |
○ Lodge |
Q4 BAS (April–June) — lodge and pay. North Coast Accounting clients may receive an ATO extension. |
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28 Aug 2026 |
🔴 URGENT |
TPAR due — all subcontractor payments for 2025–26. Penalty up to $1,565 for late lodgement. |
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31 Oct 2026 |
○ Lodge |
Individual & sole trader returns — self-lodgers only. North Coast Accounting clients get until May 2027. |
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15 May 2027 |
✅ North Coast Accounting clients |
Extended deadline for North Coast Accounting clients — another great reason to be on our books. |
WHY TRADIES ACROSS WANNEROO & PERTH CHOOSE NORTH COAST ACCOUNTING
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🔧 We know the trades |
📊 We know the benchmarks |
🛡️ We handle ATO audits |
📅 Extended deadlines |
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BOOK YOUR TAX APPOINTMENT TODAY Don’t leave it until October. North Coast Accounting clients get extended deadlines, bigger deductions, and a local accountant who knows the WA construction and trades industry inside out. www.ncaaccountants.com.au • Wanneroo, Perth WA |
Take the next step
Book your free, no-obligation consultation and take the first step towards smarter tax planning, better business decisions and long-term financial success.