If you’re flat out running a business in the building and construction industry, you might need help with your tax, compliance and business needs.
The construction industry is one of Australia’s biggest employers, with more than 1.1 million people working in the sector.
Small businesses and subcontractors are vital to the sector, helping construct homes, workplaces, roads and other pieces of infrastructure every day.
While the average construction worker knows their way around a building site, they may be less confident when it comes to meeting tax and compliance obligations.
Learning the ins and outs of these financial necessities can be overly time consuming for someone running a construction business or working as a sub-contractor, so here are some points to look out for:
Tax and accounting
Businesses and workers primarily in the construction sector can face a number of specific tax measures.
For example, construction businesses must lodge a Taxable Payments Annual Report (TPAR) if they make payments to contractors for building and construction services.
If you’re employed as a contractor, you may fall into the Personal Services Income (PSI) category, which can affect your deductions and what classifies as assessable income.
Additionally, businesses must meet certain criteria to qualify for construction sector-specific tax measures, so it always helps to speak with an expert about your tax obligations.
Strategic business advice
Most business owners have enough on their plates running the day-to-day operations and don’t spend enough time thinking about how to strategically grow their business.
Perhaps you need some advice in writing a business plan, entering a new business relationship or developing the right company structure for your circumstances.
Small businesses and sub-contractors in the construction industry face challenges all the time, ranging from weather delays to planning setbacks, overruns and labour issues.
These issues can affect other businesses around you as well, potentially jeopardising your cashflow.
Business owners can identify upcoming challenges with up-to-date and accurate cashflow modelling, while experienced advisors can develop strategies to overcome these problems.
Whatever stage your business is at, it always helps to consult with a business advisory team to check the health of your business and highlight possible pitfalls to avoid.
Insurance
Insurance is a must-have for businesses of all shapes and sizes, especially in the building and construction sector.
In most states, builders need a license to operate and require certain insurance coverage to qualify for a license.
There are some compulsory insurances for business owners such as workers’ compensation, however there are also numerous industry-specific forms of cover like vehicle and heavy machinery insurance to think about.
While it may seem easier to handle your insurances yourself, having a professional review and optimise your insurance coverage can pay dividends down the track.
Bring in the experts
We know it’s challenging to run a construction business today, let alone build it up, given our experience with clients in the industry.
At LDB Group, we offer a range of experts and services to oversee your tax and compliance, business advisory, insurance and finance needs.
Having worked with many construction businesses, we can tailor our services to your industry’s specific needs and use our experience to highlight areas to improve and hazards to avoid.
To learn more about what we can bring to your construction business, please call (03) 9875 2900 or send us details via the contact form below.
