The tradie tax time survival guide

Tax time has a way of sneaking up on tradies. Work is flat out, money is going in and out, and then a BAS lands that is bigger than the balance in the account. The jobs were good. The problem is that part of every payment never belonged to you.

This guide explains what you are actually collecting and paying, which dates matter, and a simple habit that takes the sting out of tax time. It is general information on how the system works, and your accountant should confirm the details for your situation.

What money in your account is not really yours?

When a customer pays you, the amount that lands is not all income. Depending on how you are set up, a slice belongs to the ATO:

• GST. If you are registered, you add GST to your prices and collect it for the ATO. You subtract the GST you paid on business purchases and send the difference.
• PAYG withholding. If you have employees, you withhold tax from their wages and pass it on.
• PAYG instalments. Prepayments toward your own income tax, based on your business income.
• Super. For eligible employees, you pay super on top of wages.

Treat these as holding money. The sooner your brain files them as “not mine”, the less likely you are to spend them on a new ute canopy.

How do BAS, GST and PAYG fit together?

Your business activity statement, or BAS, is how you report and pay most of these in one go. A typical tradie BAS covers GST collected and paid, PAYG withholding for any staff, and PAYG instalments.

Item	What it is	Where it shows up
GST on sales	GST you charged customers	BAS
GST credits	GST you paid on business costs	BAS
PAYG withholding	Tax taken from employee wages	BAS
PAYG instalments	Prepaid income tax	BAS
Income tax	Your final tax bill for the year	Tax return

Most small businesses lodge quarterly, generally by the 28th of the month after the quarter ends, with the December quarter due on 28 February. Some report monthly, and a registered agent can often extend due dates. Check the ATO’s lodgement calendar so you are working from the right dates for your business.

You must register for GST when your turnover reaches the threshold the ATO publishes, and you can register earlier voluntarily. If you are close, ask your accountant before you cross the line.

What is the set-aside habit?

This is the one habit that matters most. Every time money lands, a fixed slice moves into a separate tax account the same day. You do not touch it.

Here is an illustrative example. A sparky with GST registration invoices $11,000 including GST on a job.

• $1,000 of that is GST collected.
• A share of the rest will eventually be income tax, depending on profit.
• The rest covers materials, wages and the owner’s pay.

If he moves the GST portion plus a percentage for income tax across on payday, his BAS is already covered when it arrives. If he spends it all, he is borrowing from the ATO without realising.

The GST and BAS set-aside planner helps you work out a starting percentage for your own turnover. Your accountant can tune it once your real numbers are in.

Which dates should be in your diary?

Put these in your phone with reminders two weeks ahead, because the cost of missing any of them is real.

1. Quarterly BAS: generally the 28th of the month after each quarter, with the December quarter due on 28 February.
2. Super for employees: paid at least quarterly, with set cut-off dates. Check the ATO’s rules for the current rate and any changes to how often payment is required.
3. TPAR (contractor payments): if you pay subcontractors for building and construction services, the report is generally due by 28 August each year.
4. Tax return: individuals lodging themselves generally have until 31 October, and using a registered agent can extend this.
5. EOFY, 30 June: the cut-off for your financial year, so it is the time for stocktake, unpaid invoices and equipment decisions.

Dates and rates change from time to time, so treat this list as a prompt to check ato.gov.au instead of a final word.

How should a tradie handle records and expenses?

Records are the unglamorous half of tax time. A few habits turn it from a weekend of misery into a ten-minute job.

• Photograph receipts the moment you get them, or use an app that does it for you.
• Keep a simple logbook method for vehicle use, or whatever method your accountant recommends.
• Keep invoices issued and received in one place, grouped by month.
• Record cash payments straight away, with a note of what they were for.
• Keep tool and equipment purchases separate, because they may be treated differently for depreciation.

Your accountant will usually thank you for it, and fees are often lower when the paperwork arrives in good shape.

What happens if you cannot pay your BAS in full?

It happens, and it is better to handle it early. The basic order of play:

1. Lodge on time, even if you cannot pay the whole balance. Lodging avoids a separate late penalty.
2. Contact the ATO before the debt grows to ask about a payment arrangement.
3. Pay what you can and keep to whatever you agree.
4. Fix the cause. Usually that is the set-aside habit, or a pricing issue that left no margin for tax.

A tax debt does not automatically rule out finance, though it does need handling. Our tax debt hub goes deeper into the options, and how lenders view a balance owing.

What should you do before 30 June?

The last few weeks of the financial year are a good time to tidy up. Work through a short list:

• Send invoices for finished work, so income is recorded in the right year, and ask your accountant how unfinished jobs should be treated.
• Chase old debtors, and talk to your accountant about any that are unlikely to be paid.
• Review any big equipment purchases and ask what the current rules mean for timing. The ATO’s small business pages hold the latest thresholds for writing off assets, which have changed from year to year.
• Check super has been paid for the period, and that wages and PAYG withholding are reconciled.
• Book your accountant now, not in September, because the good ones fill up.

None of this takes long, and it usually turns the return from a scramble into a routine.

How does tax time affect your cash flow across the year?

Tax payments tend to land in clumps: quarterly BAS, annual return, super, and a stack of annual costs like insurance and licence renewals around the same time. If your income also dips in the same weeks, such as around the Christmas shutdown, the squeeze is real.

Look ahead. A twelve-month calendar with the big dates marked, set against your expected slow weeks, will show where the pinch points are. The cash flow gap planner is a quick way to map the weeks where money out outruns money in. For the other half of the problem, getting customers to pay on time, see our quote-to-cash guide.

When might finance help at tax time?

Sometimes the timing is just awkward. A strong quarter with several unpaid invoices can produce a big BAS right when customers have not yet paid, and a short-term bridge can cover the gap until the money arrives. If that sounds like you, you can ask about your options without committing to anything.

Want to get ahead of the next BAS?

If tax time has been a regular headache, you do not have to sort it out alone. The enquiry takes about a minute, and there is no credit check when you enquire, so you can find out what is possible without touching your credit file.

Your details are not shared around a pile of lenders. One real person reads your situation, understands the quarterly squeeze that comes with trade work, and calls you back. Fill in the form accurately, including any balance owing to the ATO, so we can match you to the right option the first time.

See if you qualify →