Building and construction workers

Building and construction employees: work-related expenses

To claim a work-related deduction:

• you must have spent the money yourself and weren’t reimbursed
• it must be directly related to earning your income
• you must have a record to prove it.

If the expense was for both work and private purposes, you can only claim a deduction for the work-related portion.

Deductions for building and construction employees (eg builders, bricklayers, interior fitters and concreters) can include:

• Travel expenses
• Clothing expenses
• Self-education expenses
• Overtime meal expenses
• Phone expenses
• Tools and equipment
• Other expenses

Expenses you can’t claim

You can’t claim:

• Child care – you can’t claim a deduction for child care expenses. These are private expenses even if you need child care to go to work.
• Fines – you can’t claim a deduction for fines imposed under law, for example, a fine you received if you were caught speeding when driving between jobs.
• Glasses and contact lenses – you can’t claim a deduction for buying prescription glasses or contact lenses as it’s a private expense relating to a personal medical condition. You may be able to claim a deduction for eye protection equipment or the cost of protective Sunglasses, sunhats and sunscreens.
• Newspapers – you can’t claim a deduction for the cost of newspapers.
• Removal and relocation – you can’t claim a deduction for the cost involved in taking up a transfer in an existing employment or taking up new employment with a different employer.

Remember to report all income in your tax return and remove any portion of your expense that is not work-related.

When you claim a deduction, you are stating that everything you have told us is true and can be supported with records. You are responsible for the claims you make in your tax return, even if you use a registered tax agent to prepare and lodge it on your behalf.

Thinking of starting a building and construction business?

Starting a business is a bit like building a house that requires solid foundation. In a business sense these foundations include the right tax structure and accounting software, adequate and appropriate insurances together with a marketing plan and a lead generation website. Your choice of business structure is absolutely critical and there are a number of different options including sole trader, partnership, company and trust.

Whenever we provide advice on business structures we always take into account:

• Income Tax Minimisation
• Maximize Asset Protection
• Allow for the Admission of New Business Partners or Investors
• Comply with all Legal Requirements in your Industry
• The Risk Profile of Your Industry
• Consider Future Entitlement to Discount Capital Gains Tax Concessions

Building and construction workers are one of our specialist client groups and having mentored a number of business owners through the start-up phase of their business we have built a reputation as business start-up specialists. If you are looking to start a business as a builder or buy into an existing business, there are numerous issues to consider. It can be a maze of issues but as accountants and business advisors we can assist you in all of these areas plus provide advice on the preparation of a business plan, marketing plan and a cash flow budget.

We will help you understand the ways to grow a business plus identify the key profit drivers in your business. We can walk you through a number of profit improvement strategies and even quantify the profit improvement potential in your business. Our role is to make sure you know your numbers and don’t leave any profit or tax savings on the table.

The building and construction industry is challenging but can be very rewarding. All business owners need to budget, plan, and monitor their business’ performance. We know the pitfalls of building and construction industry and look forward to working with you to build your business and grow your wealth.

In summary, we strive to deliver practical, timely and cost effective advice that could give you a serious competitive edge in your industry. Contact us now to arrange the first free 1/2 hour meeting to discuss in details.