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Please note: The ATO will be conducting more frequent audits in the Construction and Trades industries in the next three years to deal with cash and hidden economies. Please contact Think Accountants for further information. Read More
The Victorian economy is highly dependent on the construction and trades industry – both residential and commercial. The 2011 Census indicated that over 9 percent of the Victorian workforce was employed in the building and construction industry itself, not including other trades. Whether a small, medium or large company in these industries, it is important acknowledge the contribution being made to the economy.
Many businesses in these industries include sole traders or companies. Where the business is large enough to have staff, it is usually compiled of full time staff and/or apprentices. Australian taxation laws outline specific requirements for these industries. With government changes in policy and regulations, businesses can be affected by changes to funding, reimbursements and other financial support. Guidelines regarding apprenticeships are also frequently changing. A competitive and successful business in the construction and trades sector should be aware of its industry benchmarks and should strive to operate within these.
It is crucial that any business in the construction and trades industries, whether set up as a company or sole trader, have their accounting work taken care of in detail, by people who have a full understanding of the industry and related government regulations. For example, construction and trades business require specific accounting software that will meet their specific needs. Taxable payments reporting require complete accuracy. Further, it is important that employee versus contracting decisions are carefully considered to ensure the best outcome for the business.
At Think Accountants, we are very aware of the specific needs and requirements of our clients in the construction and trades industries. We are highly equipped at providing full, extensive and ongoing accounting and business support. We have the tools and training to ensure that all income is accounted for and that our clients fall within the margins of their industry benchmarks. This is particularly important in the current climate in Victoria, as the Australian Taxation Office will be increasing the number of audits it conducts in the construction and trade industries, to measure and regulate cash and hidden economies.