The ATO has designed and published a new online resource to help tradies more easily find and understand key tax, super and registration obligations: Building and construction tradies – tax essentials, also known as TaxTools4Tradies.
The guidance - developed through industry consultation - has been tailored to real on-site and work-related scenarios, and brings together essential tax and super information for all tradies, whether you’re new to the industry or already established.
Help for both employed and self-employed tradies
A tradie’s tax, superannuation and tax registration obligations vary depending on whether you:get paid wages by an employer, and they withhold tax for you, run your own business or work as a contractor and have an Australian business number (ABN), earn wages as an employee and run your own business.
TaxTools4Tradies provides dedicated guidance for both employed and self-employed tradies, noting the differences in reporting obligations and what sorts of deductions can be claimed. The site also provides information on what to do if you’re both an employee and run a business (for example, where you have your own company and are also an employee of that company).
What’s covered in the guidance
TaxTools4Tradies provides quick access to more detailed guidance on specific topics, such as what to do when starting work as a tradie, when an ABN is required, record-keeping obligations, how to declare income and expenses correctly, and how to manage tax obligations, among other topics.
In addition, the guidance provides practical tips to help avoid common mistakes, and also gives links to training and other useful resources, making it a one-stop shop for help with common tax issues.
Support throughout the year
Importantly, TaxTools4Tradies isn’t just there for tax time. The guidance has been designed to support tradies throughout the year, including tips to build good business habits and support options should you fall behind in your tax obligations.
However, it’s worth remembering that this new guidance is just that—guidance. If you have any questions not covered by the ATO’s new TaxTools4Tradies platform, or want more bespoke advice about how to get the best tax result, reach out to a member of our team today for a personalised chat.