Melbourne Construction Accounting Specialists

Builders & Tradies Accountant Melbourne — Tax, BAS & Advisory

42 Advisory is a specialist accountant for builders and tradies in Melbourne, trusted for tax compliance, cash flow management and project-level advisory. We understand the financial pressures unique to building and construction: progress claim timing, retention holdbacks, subcontractor GST and worker classification risk. Our CPA-qualified team delivers fixed-fee accounting covering BAS lodgement, entity structuring, job costing and 3-way forecasting, so you can focus on the build while we manage the numbers.

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Accredited. Connected. Trusted.

Trusted by Melbourne Builders, Contractors and Tradies

Trusted by Melbourne's residential builders, commercial contractors, subcontractors and trade businesses. We simplify tax, compliance and cash flow so every project stands on solid financial ground.

Fixed-Fee model

Project profitability expertise

Proactive Cash Flow Management

Tax Advice & Strategy for Builders

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 the numbers straight. Construction is also Australia's largest employer of independent contractors: ABS data shows 280,600 of the nation's 1.1 million independent contractors work in construction, more than any other industry. That contractor density is exactly why the ATO watches this sector closely.

At 42 Advisory, we help trades and contractors gain clarity and control over their financial operations. We combine cloud accounting with local advisory insight: planning cash flow, accurately pricing projects, and growing sustainably. Our 3-way forecasting service connects profit, cash flow and balance sheet so you can see where every dollar sits, including retention you have earned but not yet received.

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 are managing multiple active job sites, scaling your team or preparing for your next stage of growth, we provide fixed-fee accounting and advisory designed for construction. Sole trader on the tools? Our personal tax service handles contractor returns too.

Simplify Compliance. Strengthen Performance. Protect Margins.

Tax & GST for Builders and Subcontractors

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, an active ATO and Fair Work enforcement focus in 2026
Underestimating job costs through poor margin tracking
PSI and PSB rules affecting subcontractors
Unplanned tax liabilities disrupting working capital; see the 2026 ATO due dates guide

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

How We Help

Accounting Services for Builders and Tradies in Melbourne

PSI / PSB Structuring

Guidance on the personal services income rules so your structure supports compliance and long-term tax efficiency. Start with our PSI guide for subcontractors, then talk to our tax planning team about the right entity.

Contractor vs Employee Risk Management

Clear advice on engagement structuring to minimise payroll tax and ATO exposure. Our guide to the ATO contractor vs employee rules explains the six-indicator test, super obligations and the 2026 penalties.

GST & BAS for Construction

Accurate GST treatment of progress payments, retention amounts and mixed supplies through our BAS and IAS lodgement service, reducing audit risk and cash flow surprises.

Tax Planning & Income Structuring

Quarterly reviews to optimise income distribution, deductions, asset purchases and cash reserves. See what your team can claim in our tradie tax deductions guide.

Cloud Accounting & Job-Level Reporting

Xero setup, automation and integrated job tracking through our bookkeeping service, giving visibility over true project margins, plus TPAR preparation for contractor payments.

Strategic Difference

We don't just lodge BAS and tax returns. We help you understand where your profit comes from, and where it is leaking. That is the core of our tax compliance and advisory work.

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 for materials, wages and equipment with integrated 3-way forecasting.
BAS, IAS & Compliance – we manage ATO lodgements and keep you fully compliant while you stay on the tools.
Payroll & Contractor Management – timesheets, super and subcontractor payments with automated cloud tools, ready for Payday Super from 1 July 2026.
Equipment & Vehicle Finance – our asset finance team structures ute, truck and plant purchases alongside the tax planning.
Fixed-Fee Advisory Support – predictable pricing and proactive advice. No surprises, just a dependable partnership.

Three changes hit construction businesses around 1 July 2026: Payday Super requires super to reach employees' funds within seven business days of each payday, the $20,000 instant asset write-off threshold is scheduled to revert to $1,000, and a joint ATO and Fair Work enforcement program is targeting sham contracting in building and construction.

Change	What it means for you	Date
Payday Super	Super due within seven business days of each pay event, not quarterly. Deemed-employee subcontractors are caught too.	1 July 2026
Instant asset write-off	$20,000 per-asset threshold ends 30 June 2026; scheduled to revert to $1,000. Equipment planned for next year may be worth buying now.	30 June 2026
Sham contracting blitz	ATO and FWO joint enforcement targeting building and construction. Penalties up to $99,000 per contravention for small businesses.	Underway since March 2026

If any of these touch your business, a review before 30 June is worth the hour. Our CPA advisory team can quantify the impact in a single session.

Case Study:

Melbourne Demolition Business — Cash Flow Forecasting and Growth 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.

Our CPA team publishes practical guides for the construction industry. Start here:

YOU MAY NEED TO KNOW

Frequently Asked Questions – Builders & Contractors Accounting in Melbourne

Do builders need a specialist accountant?

Yes. Builders face GST on progress claims, retention accounting, subcontractor payment rules, TPAR reporting and project-based profitability tracking. A specialist construction accountant manages these together, keeping you ATO-compliant while improving cash flow visibility and job-level margins across every project.

How does GST work for builders in Australia?

Builders charge 10% GST on taxable supplies and claim input tax credits on eligible purchases.

Complexity arises with progress payments, retention amounts and mixed-use developments, where attribution timing depends on your reporting basis. Accurate BAS reporting avoids audit risk and cash shortfalls. See our GST for builders guide.

What tax deductions can trade businesses claim?

Trade businesses can deduct tools and equipment, vehicle expenses, work-related travel, protective clothing, subcontractor payments, insurance premiums and eligible asset write-offs. The $20,000 instant asset write-off applies to assets first used by 30 June 2026. Learn more about tradie tax deductions.

How can builders improve cash flow?

Builders improve cash flow through progress claim forecasting, disciplined retention release scheduling, structured supplier payment terms, and accurate PAYG and GST liability forecasting. Implementing 3-way forecasting across profit, cash flow, and balance sheet prevents the timing failures that cause most construction insolvencies.

Should subcontractors operate as sole traders or companies?

It depends on income level, risk exposure, asset protection and growth plans. A company offers liability protection and planning flexibility, but the personal services income rules may attribute income back to the individual. A CPA can assess the optimal structure for your situation.

What accounting software is best for builders?

Xero is the most common choice for project tracking, integration with job management tools, real-time reporting and payroll compliance. Construction businesses benefit most when Xero is paired with an integrated job costing system so margins are visible per project, not just per quarter.

When do I have to pay super for subcontractors?

You must pay super for a subcontractor whose contract is wholly or principally for their personal labour, even if they hold an ABN and invoice you. The rate is 12%, and from 1 July 2026 Payday Super requires payment within seven business days of each payday.

Can a builder reduce tax legally?

Yes, through proper entity structuring, timing of income and expenses, asset write-off planning, superannuation contributions and Division 7A management for companies. All strategies must comply with Australian tax law; the dividing line is planning within the rules, not avoidance schemes. Our tax planning service covers this quarterly.

Book a strategy meeting with our Chadstone CPA team.

Fixed-fee accounting, job costing and cash flow advisory for Melbourne builders and tradies.

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