If you’re like most tradies, you work hard for your money—but that doesn’t mean you should be handing more of it over to the ATO than you need to.
We get it—tax isn’t exciting, and it’s easy to just let your accountant handle it each year without digging too deep. But here’s the thing: there are some simple (and legal) ways to reduce your tax bill—if you know where to look.
Here are five common mistakes we see tradies make that end up costing them thousands more in tax than necessary.
1. Not Planning Ahead Before 30 June
Waiting until after the financial year ends to “see how you went” is one of the biggest missed opportunities tradies make when it comes to tax.
A good tax strategy needs to happen before 30 June—not after. That way, you can still take advantage of deductions, adjust how income is received, top up your super, or make a smart equipment purchase to reduce this year’s tax bill.
Tip: Book in a tax planning session around April–May each year.
2. Using the Wrong Business Structure
Many tradies start out as sole traders—and that’s fine at the beginning. But if you’ve grown, brought on staff, or started making decent profits, staying in the wrong structure could be costing you more in tax than necessary.
Companies, trusts, and other structures might offer better tax flexibility and asset protection depending on your situation.
Tip: Have your structure reviewed every few years, especially as your income or setup changes.
3. Paying Yourself Inefficiently
Do you know the most tax-effective way to get money out of your business?
We often see tradies who take drawings randomly, or pay themselves in a way that leads to higher tax (either personally or in the business). There are smarter ways to structure how you pay yourself, your partner, or family if they’re legitimately involved in the business.
Tip: Work with your accountant to set up a tax-efficient profit distribution plan.
4. Not Maximising Deductions or Missing What You Can Claim
You’d be surprised how many deductions tradies miss—tools, safety gear, training, vehicles, phones, even home office use. At the same time, some claim things incorrectly and end up on the ATO’s radar.
A proper review of your expenses can help you identify what’s legit to claim and ensure you don’t leave anything on the table.
Tip: Keep good records and speak with an accountant who understands your trade.
5. Doing It All Yourself or Only Talking to Your Accountant at Tax Time
If the only time you speak to your accountant is when your tax return is due, you’re probably missing out.
Tax planning is an ongoing process—not a once-a-year event. And if you’re trying to manage it all on your own, it’s easy to overlook things that could save you serious money.
Tip: Find an accountant who works with tradies, stays in touch regularly, and actually helps you plan—not just file.
So, Are You Paying Too Much Tax?
If any of these sound familiar, chances are you’re giving more to the tax office than you need to. But it’s fixable—with the right advice and a proper plan in place.
✅ Want to know where you could be saving tax in your business?
👉 Book Your Call Here Straight Talk Accountants.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.
