Melbourne Construction Accounting Specialists

Accounting & Tax for Builders, Contractors & Trade Businesses in Melbourne

Whether you're a builder, contractor or tradie business in Melbourne, our team provides tailored accounting, job-costing, cash-flow and tax advisory services so you can focus on your craft while we manage the numbers.

Get Started

Fixed-Fee model

Project profitability expertise

Proactive Cash Flow Management

Tax Advise & Strategy

Accredited. Connected. Trusted.

Certified Melbourne Accountants Backed by Australia’s Leading Platforms

Trusted by Melbourne’s medical professionals, ecommerce brands, and local service businesses. We simplify your tax, accounting, and growth strategy.

Built for the Site. Backed by Strategy.

Specialist Construction Accountants in Melbourne

Running a trade or construction business means balancing quotes, suppliers, staff, and timelines — often while trying to keep your numbers straight.

At 42 Advisory, we help trades and contractors gain clarity and control over their financial operations. Whether you’re managing multiple projects, subcontractors, or payment schedules, our systems simplify the back-end so you can focus on the job site.

We combine modern cloud accounting with local advisory insight — helping you plan cash flow, price projects accurately, and grow sustainably.

Who We Work With

We support construction and trade businesses across Melbourne, including:

Residential builders
Commercial contractors
Property developers
Subcontractors
Electricians
Plumbers
Carpenters
Concreters
Landscapers
Trade businesses with 1–50 staff

Whether you're managing multiple active job sites, scaling your team, or preparing for your next stage of growth, we provide fixed-fee accounting and advisory designed specifically for construction businesses.

Simplify Compliance, Strengthen Performance

Tax & GST for Builders and Subcontractors

Simplify Compliance. Strengthen Performance. Protect Margins.

Construction businesses face unique financial pressures — irregular progress payments, retention delays, subcontractor classification risks, and tight job margins that can disappear without proper oversight.

At 42 Advisory, we help Melbourne builders and subcontractors stay compliant while building a stronger financial structure behind every project.

The Financial Challenges Builders Face

Many construction businesses struggle with:

Cash flow gaps between progress claims and supplier payments
GST timing on progress payments and retention amounts
Misclassifying contractors vs employees (ATO risk)
Underestimating job costs due to poor margin tracking
PSI/PSB rules affecting subcontractors
Unplanned tax liabilities disrupting working capital

Without structured systems, profitable jobs can still result in cash flow stress.

How We Help

PSI / PSB Structuring

Guidance on personal services income rules to ensure your business structure supports compliance and long-term tax efficiency.

Contractor vs Employee Risk Management

Clear advice on engagement structuring to minimise payroll tax and ATO exposure.

GST & BAS for Construction

Accurate GST treatment of progress payments, retention amounts, and mixed supplies — reducing audit risk and cash flow surprises.

Tax Planning & Income Structuring

Quarterly reviews to optimise income distribution, deductions, asset purchases, and cash reserves.

Cloud Accounting & Job-Level Reporting

Xero setup, automation, and integrated job tracking systems that give visibility over true project margins.

Strategic Difference

We don’t just lodge BAS and tax returns. We help you understand where your profit comes from—and where it’s leaking.

Accounting That Works as Hard as You Do

Smarter Systems. Clearer Numbers. Better Projects.

Our construction and trade accounting services are designed to reduce admin stress, improve visibility, and protect your profits.

Core Services Include:

✅ Job Costing & Project Reporting – Track actual costs against budgets in real-time so you know exactly where each job stands.
✅ Cash Flow & Forecasting – Plan ahead for materials, wages, and equipment costs with integrated 3-way forecasting.
✅ BAS, IAS & Compliance – We manage ATO lodgements and ensure full compliance so you can stay focused on your projects.
✅ Payroll & Contractor Management – Simplify timesheets, super, and subcontractor payments with automated cloud tools.
✅ Fixed-Fee Advisory Support – Predictable pricing and proactive advice — no surprises, just dependable partnership.

Case Study:

Demolition Business Scaling with Structure and Strategic Planning

A Melbourne-based demolition company with 8 employees, multiple trucks, and specialised equipment approached us during a growth phase. While the work pipeline was strong, the directors lacked clear forecasting around cash flow, labour costs, and their capacity to acquire an additional truck and equipment to expand operations. Overtime, weekend work, and public holiday penalty rates were being managed manually, limiting visibility over true job margins. We implemented structured 3-way forecasting and modelled the proposed asset acquisition to assess debt capacity, GST timing, and tax implications — ensuring expansion could be funded without placing pressure on working capital.

Alongside strategic acquisition planning, we introduced an integrated payroll system that accurately captured overtime, public holiday, and weekend rates while strengthening STP compliance. This provided real-time labour cost allocation to projects, improved margin visibility, and ensured the team was paid correctly and transparently. With structured reporting and forecasting in place, the business successfully expanded its fleet, improved profitability tracking, and positioned itself for sustainable growth rather than reactive scaling.

YOU MAY NEED TO KNOW

Frequently Asked Questions – Builders & Contractors Accounting in Melbourne

Do builders need a specialist accountant?

Yes.

Builders and contractors deal with complex GST rules, subcontractor payments, retention amounts, progress claims, and project-based profitability.

A specialist construction accountant ensures compliance while improving cash flow and job margin tracking.

How does GST work for builders in Australia?

Builders must charge GST on taxable supplies and can claim GST credits on eligible business expenses.

However, GST on progress payments, retention amounts, and mixed-use developments can create complexity. Proper GST reporting prevents ATO audit risks.

What tax deductions can trade businesses claim?

Common deductions include:

Tools and equipment
Vehicle expenses
Work-related travel
Protective clothing
Subcontractor payments
Insurance
Asset write-offs (instant asset write-off rules apply)

A structured tax plan ensures maximum legitimate deductions.

How can builders improve cash flow?

Cash flow can be improved through:

Progress claim forecasting
Managing retention release schedules
Structuring supplier payment terms
Forecasting PAYG & GST liabilities
Implementing 3-way forecasting (profit, cash flow, balance sheet)

Builders often fail due to cash flow timing, not lack of profit.

Should subcontractors operate as sole traders or companies?

It depends on:

Income level
Risk exposure
Asset protection requirements
Future growth plans

Companies offer asset protection and tax planning flexibility, but personal services income (PSI) rules may apply.

What accounting software is best for builders?

Xero is commonly used due to:

Project tracking
Integration with job management tools
Real-time reporting
Payroll compliance

Construction businesses benefit from integrated job costing systems.

Do builders need payroll compliance support?

Yes. Builders employing staff must manage:

EBA Compliance
PAYG withholding
Superannuation
STP reporting
Subcontractor classification risks

Misclassification of contractors can trigger ATO penalties.

Can a builder reduce tax legally?

Yes, through:

Proper entity structuring
Timing of income and expenses
Asset write-off planning
Superannuation contributions
Division 7A planning (if operating via a company)

Strategic tax planning must comply with Australian tax law.

Model Your Property Decisions Before You Commit

Schedule a Strategy Meeting