The Aussie tradie checklist: 2022 edition
Australian tradies have a lot to think about when running a business. They need to deal with taxes, marketing, cash flow, and general operations. Keeping track of all these elements can be tricky, but we’re here to help. We’ve compiled a handy checklist to help tradies better manage their business in 2022.
Claim deductions for work-related expenses
To maximise your returns this tax season, make sure to claim all the deductions you’re entitled to. Tradies can claim tax deductions on the following expenses:
- Transport - Work-related travel can be claimed as a deduction if it's necessary for your work and carried out over the course of earning your income.
- Personal protective equipment - You can claim any items you need to do your job safely, such as boots, hard hats, and safety goggles.
- Sunglasses and sunscreen - If you frequently work outdoors, you can write off the cost of these items.
- Tools - You can immediately write off any tools that cost less than $300.
- Education - You can deduct training courses under 12 months long as long as they’re fully paid by the end of the financial year and relevant to your industry.
Know your tax deadlines and regulations
At the end of the financial year, companies must lodge tax returns detailing earnings and expenses by federally mandated deadlines. The government may also implement new regulations and incentives that impact trades businesses. The checklist below includes the most important deadlines and regulation changes:
- Companies must report their taxable income, tax offsets and credits, pay-as-you-go withholding statements, and refundable tax amounts by 31 October.
- The federal government has extended the temporary full expensing scheme until June 2023. Businesses with a turnover of less than $5 billion can instantly deduct the business portion of the cost of new or secondhand assets. Assets must be purchased or installed before the deadline to be eligible for the full expensing scheme.
- Businesses need to lodge and pay business activity statements on a quarterly, monthly, or annual basis, depending on their GST turnover.
- Trades businesses and government agencies that hire contractors and subcontractors will need to submit a taxable payments annual report by 28 August.
Stay on top of tradie trends
Tradies can maintain their competitive edge by staying abreast of the latest industry news and developments. Some useful resources include:
- Master Builders Australia – a website that provides news and updates on national building and construction trends, as well as advice for tradies
- Energy Magazine – a news site that reports on groundbreaking developments in Australia’s electrical industry
- Institute of Plumbing Australia – a hub where Australian plumbers can learn about new licensing and regulation, plumbing standards, technical skills, and more
- Tradiematepro – a coaching service and online forum where tradies can get expert advice on growing their business
- TradiePad – a consulting and training company that helps tradies adapt to new game-changing technologies
- TradieWives – a collaboration platform to support wives and partners of tradies.
Expand your reach online
Many Australians browse the web to find tradies, so you need to have a strong online presence. Promoting your services on social media and online listing platforms can connect you with more clients and increase sales. If you want to grow your business, consider marketing your business on the following online platforms:
- Facebook – ideal for all trades businesses that want to showcase their services through targeted posts, videos, and photos.
- LinkedIn – great for connecting with other businesses that may be seeking reputable contractors.
- Instagram – perfect for displaying more visual services like renovations, construction, and painting.
- hipages Group – suited for promoting your services to a wider variety of customers.
Optimise your cash flow
Running a trades business can be unpredictable, with some months seeing a lot of work, while others are slower. It’s important to manage your expenses and cash flow to make sure you can cover costs during the slower months. Here are a few tips to consider:
- Quote accurately based on client requirements and your company’s service markups to increase your profit margins for each job.
- Get paid faster by invoicing clients as soon as a job is completed. Provide PayPal, BPAY, credit card, direct debit, financing, and cash payment options to simplify the collections process.
- Purchase secondhand equipment to reduce costs and pay suppliers early to take advantage of early payment discounts.
- Reduce travel costs with smart job scheduling and route optimisation apps.
- Forecast your cash flow using financial management software to track seasonal demand. This allows you to anticipate cash surpluses and shortages throughout the year, so you can adjust your spending accordingly.
Implement job management software
Job management software dramatically increases the efficiency of administrative and on-site processes. The right software can help you automatically process work orders, assign jobs to the right person, and track job progress in real time. Some programs even let you break down the tasks involved in a job through a simple checklist, so on-site workers can follow precise instructions.
WorkBuddy is one of the best job management software available today. Not only does it streamline job planning and execution, but it also includes accounting and business analytics features. All these capabilities help you prevent delays, reduce costs, increase customer satisfaction, and reach your business goals. Book a free demo today to learn more.
