5 Tax Planning Tips for Tradies Before EOFY

9 Apr

For tradies running their own business, the end of the financial year (EOFY) is a critical time. Between quoting jobs, managing clients, and keeping cash flow steady, tax planning often gets pushed to the last minute. But leaving it too late can mean missed deductions, unnecessary tax bills, and even penalties.

If you’re a sole trader or small business owner, proactive tax planning means keeping more of your hard-earned money in your pocket.

So, before June 30 rolls around, here are five essential tax planning tips every tradie needs to know.

1. Know What You Can Claim (And Keep Records!)

Tax deductions are your best friend…if you track them properly. Many tradies miss out on legitimate tax write-offs simply because they don’t keep accurate records.

You can claim deductions on:

Tools and equipment – Anything you buy for work, from power tools to safety gear.
Work vehicles – Running costs like fuel, servicing, insurance, and even depreciation.
Tech and software – Laptops, tablets, and accounting software subscriptions.
Uniforms and PPE – High-vis vests, steel-cap boots, and safety goggles.
Training and courses – Any certifications or trade licences that help your business.

To maximise your claims, store receipts digitally using accounting software or apps like ATO’s myDeductions tool. If you’re unsure what counts, a tax accountant in Richmond can help you keep your expenses in check.

2. Prepay Expenses & Reduce Your Tax Bill

If you know you’ve got a solid tax bill coming, consider prepaying some expenses before June 30. This helps lower your taxable income and keeps your cash flow steady.

Expenses to consider prepaying:

Supplier invoices
Work vehicle insurance
Business subscriptions (e.g., accounting software, website hosting)
Rent for a work site or storage shed

By bringing these expenses forward into the current financial year, you’ll get the deduction sooner—meaning a lower tax bill. Not sure if this strategy works for you? Chat with accountants in Richmond who specialise in tradies.

3. Super Contributions – A Smart Tax Strategy

Superannuation isn’t just for employees—sole traders and business owners can also contribute to their own super and claim a tax deduction.

Here’s why you should top up your super before EOFY:

Reduce your taxable income
Secure your future retirement
Possibly qualify for government co-contributions

The ATO allows deductible contributions up to $27,500 per year (including employer contributions if you pay yourself through your business). Even putting in an extra $5K before EOFY can lower your tax bill and help you build long-term wealth.

If you’re behind on employee super payments, get them sorted before June 30—late super payments aren’t tax-deductible and could land you in trouble with the ATO.

4. Write Off Bad Debts & Unused Inventory

If you’ve got outstanding invoices from clients who just aren’t going to pay, you may be able to write them off as a bad debt deduction. This reduces your taxable income and ensures you’re not paying tax on money you never received.

To claim a bad debt deduction, you’ll need:

Proof you tried to recover the money (e.g., follow-up emails, debt collection attempts)
A written record of when you decided to write off the debt

Likewise, if you’ve got obsolete stock sitting around, do a stocktake before EOFY and write off any unsellable materials. This can lower your tax bill and help clean up your books.

5. Invest in Tools & Equipment with Instant Write-Offs

Need a new ute, power tools, or a laptop? EOFY is the perfect time to buy.

The instant asset write-off allows small businesses to immediately deduct the full cost of new assets instead of depreciating them over several years. The eligibility threshold can change, so it’s best to check with your accountant before making a big purchase.

You can use this for:

New work vehicles
Expensive tools & machinery
Office equipment like laptops and printers

This strategy not only reduces your taxable income but also helps you upgrade your business tools before EOFY sales end.

How Bold Accounting Helps Tradies Stay Tax-Smart

Many tradies only think about tax once a year—but tax accountants in Penrith should be supporting your business all year round.

At Bold Accounting, we work with tradies to help them:

Stay ahead of tax deadlines (so you’re never hit with surprise bills)
Maximise deductions by keeping better records
Manage cash flow and plan for quieter months
Understand how tax strategies can help you grow your business

We don’t just file your tax return—we help you make smarter financial decisions so you can grow your business and still have time to enjoy your weekends.