Key tax due dates for Construction Trade Professionals for 2024

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As a tradesperson running your own construction business, as an electrician, plumber, or bricklayer, you need to manage your tax obligations, cover overhead costs, and seek new projects while keeping an eye on cash flow.

Recognising the challenges you face, especially with tax deadlines, we’ve prepared a guide outlining the key tax due dates for the 2024 financial year. This is essential for maintaining compliance with the Australian Taxation Office (ATO). Staying ahead of these dates ensures you lodge your tax return on time, avoiding penalties and interest charges.

Our goal is to assist you in navigating the complexities of tax time, from understanding your income and due dates to preparing and lodging your tax returns. Contact us to learn more about how we can help you keep on top of your finances and focus on what you do best.

Understanding Business Activity Statements (BAS) in construction trades

Preparing your Business Activity Statements (BAS) quarterly involves recording your income, expenses, and other financial activities related to your trade. Timely submission of your BAS is key to maintaining a positive standing with the Australian Taxation Office (ATO) and avoiding potential penalties.

Important tax due dates for your trade business

For tradespeople like yourself, specialising in electrical, plumbing, or other construction work, managing your Business Activity Statements (BAS) is vital in handling your tax obligations as a sole trader or director of a company.

This includes dealing with Goods and Services Tax (GST) and Pay As You Go (PAYG) withholding tax. GST, a 10% value-added tax on most goods and services in Australia, requires you to report and remit the GST your business collects through your BAS. Additionally, it’s also your opportunity to claim GST credits, which must be claimed within four years from the due date of the earliest activity statement where they could have been claimed.

PAYG instalments are a method for incrementally paying your income tax, which help you manage your expected tax liability. These instalments are based on a rate or amount set by the Australian Taxation Office (ATO), derived from your most recent tax return. For businesses experiencing significant fluctuations in turnover, like electrical or plumbing services, adjusting the instalment rate to reflect your actual income can lead to a more accurate calculation of your instalment amount, which in some cases would mean you pay less tax throughout the year, which would help with cashflow.

The ATO typically issues PAYG instalments through separate notices, rather than including them in your BAS. This simplifies the process and enables you to give accurate reporting. As a tradesperson, keeping on top of these details is essential for ensuring your business runs smoothly.

Tax return deadlines

Submitting your Business Activity Statement (BAS) is a key part of your tax schedule as a tradesperson in construction, whether you’re an electrician, plumber, or involved in another trade. It’s important to lodge your BAS on time, following the schedule set for the Australian financial year.

Quarterly submission dates

• First Quarter (July, August, September): Lodge by the 28 October.
• Second Quarter (October, November, December): Lodge by the 28 February.
• Third Quarter (January, February, March): Lodge by the 28 April.
• Fourth Quarter (April, May, June): Lodge by the 28 July.

Annual submission

If your business is voluntarily registered for GST and your GST turnover is below $75,000, or $150,000 for not-for-profits, you have the option to report your BAS annually.

Meeting these due dates is vital for hassle-free management of your tax affairs. This is crucial whether you’re anticipating a tax refund, preparing for your tax bill, or needing to lodge tax returns and any outstanding returns. Lodging your returns, including your annual report, on time ensures you stay on top of your financial responsibilities.

If you’re uncertain about your financial situation or need assistance with lodging your tax returns, consulting a registered tax agent can be extremely beneficial. They can guide you through the process and help ensure that everything is completed correctly and on time. Remember, using tools like your myGov account provides straightforward access to Australian Taxation Office (ATO) services, making it easier to manage your tax obligations efficiently.

Cash flow management aligned with tax deadlines

Effective cash flow management is vital for you as a tradesperson in construction. As tax deadlines approach, it’s important to have enough funds for your tax bill and other commitments. This ensures smooth business operations, whether in electrical, plumbing, or other trades.

Consult a registered tax agent for help in preparing and lodging your tax returns. They can offer advice on managing your income, PAYG withholding, and ensuring timely payments to avoid penalties. Remember, staying on top of these tax obligations is key to your financial stability and business success.

Seeking expert advice for tax and business growth

We help establish a robust foundation in tax compliance, bookkeeping, cash flow budgeting, and tax planning, all tailored to the unique needs of the construction industry.

Next step is to contact TMS Financials

TMS Financials provides you with a team of experienced professionals that help you achieve your financial goals through smart tax structures and strategic financial structuring. We’re a one-stop shop for all financial needs and pride ourselves on building strong partnerships with our clients.

Book a free financial health review to see the difference we can make in your financial future.

Disclaimer

This outline is for general information only and not as legal, tax or accounting advice. It may not be accurate, complete or current. It is not official and not from a government institution. Always consult a qualified professional for specific advice tailored to your unique circumstances.