Quick answer
A construction accountant in Perth looks after the areas where builders and tradies most often get caught out:
- TPAR reporting;
- super for subcontractors;
- job costing and WIP;
- progress claims and retentions;
- Payday Super (from 1 July 2026);
- choosing the right structure to protect your assets.
Look for a Chartered Accountant who works only with construction businesses, uses Xero, charges fixed fees, and plans your tax before 30 June. Reacco's packages start from $400 + GST per month.
Most builders don't go broke because they aren't good at building. They go broke because of cash flow. Jobs are quoted too tight, retentions are held for months, the tax bill lands in the same month as a slow payer, and super on subcontractors is missed until the ATO asks about it.
A general accountant lodges your return. A construction accountant helps you price, get paid, stay out of trouble with the ATO and keep the profit. I'm Colm Delaney, a Chartered Accountant and founder of Reacco. We work exclusively with construction, trades and property businesses across WA. Here is everything a Perth builder, contractor or tradie needs to know in 2026.
Why the construction industry needs a specialist accountant
Construction is one of the ATO's most closely watched industries. In September 2026, the ATO announced that shadow economy prosecutions for non-lodgment had jumped 80%, and building and construction has long been a focus area. On top of that, construction businesses face rules most general practices rarely deal with:
| Construction issue | Why it matters |
|---|---|
| Progress claims and retentions | Affect when you pay GST and when income is taxed, and can seriously squeeze cash flow |
| Work in progress (WIP) | Without WIP reports your profit and loss can show a profit while the bank account is empty |
| Subcontractors | TPAR reporting, ABN checks, and possible super and payroll tax obligations |
| Personal services income (PSI) | Can stop sole-trader subbies from splitting income or claiming certain deductions |
| Division 7A | Taking money out of your Pty Ltd the wrong way can turn it into an unfranked dividend |
| Vehicles, tools and equipment | Instant asset write-off, FBT on utes, and financing plant through chattel mortgages or leases |
| Home indemnity and head contractors | Insurers and larger builders often want current financial statements before they will work with you |
The 2026 tax and compliance checklist for WA builders and tradies
1. TPAR: due 28 August every year
If your business is mainly in building and construction, or your payments for construction services make up 10% or more of your GST turnover, you generally need to lodge a Taxable Payments Annual Report. It lists every contractor you paid. The ATO matches it against their tax returns, so any mismatch comes back to you.
2. Super for subcontractors
Having an ABN does not automatically mean a contractor isn't owed super. If someone is paid wholly or mainly for their labour, super guarantee (currently 12%) can apply. This is one of the most expensive mistakes in construction, because unpaid super comes with the super guarantee charge, interest and admin fees, and none of it is tax deductible.
3. Payday Super from 1 July 2026
Super must now reach your employees' funds within 7 business days of each payday. Paying super quarterly is over. If you pay weekly wages, your cash flow and Xero payroll setup need to handle a weekly super payment too.
4. No ABN? Withhold 47%
If a supplier doesn't quote an ABN, you generally have to withhold tax at the top rate (47%) and pay it to the ATO. Check every subbie's ABN on ABN Lookup before you pay them.
5. GST on progress claims
Businesses with turnover under $10 million can generally account for GST on a cash basis. That means you pay GST when the client pays you, not when you invoice. For builders waiting 30 to 60 days on progress claims, this can make a big difference to cash flow.
6. Utes, tools and equipment
Eligible businesses with turnover under $10 million can generally write off assets costing less than $20,000 each in the year they are first used. Some work utes provided to employees may also be exempt from FBT if private use is limited to minor, irregular trips such as the drive home. For larger plant, compare a chattel mortgage, lease or cash purchase before you sign. The GST and depreciation treatment differs for each.
7. WA payroll tax
Once your Australia-wide taxable wages go over $1 million a year, WA payroll tax applies. Some contractor payments can count as wages under the contractor provisions, so growing builders get caught by surprise.
8. Get paid under Security of Payment
The Building and Construction Industry (Security of Payment) Act 2021 (WA) gives contractors enforceable rights to be paid on time. Your accountant should flag slow payers early, and your payment claims should be set up to comply with the Act.
Choosing the right structure for your building business
| Structure | Good for | Watch out for |
|---|---|---|
| Sole trader | New tradies with low risk and simple setups | No asset protection; taxed at personal marginal rates up to 47% |
| Pty Ltd company | Growing builders with contracts, staff and risk | 25% base rate entity tax, but Division 7A applies if you take money out incorrectly |
| Discretionary trust (+ corporate beneficiary) | Established businesses with family members to distribute to | More set-up and running costs; trust distribution rules must be followed |
The rule of thumb: once your profit is consistently above about $120,000 to $150,000, or you are signing head contracts, it is time to model a company or trust. Restructure the wrong way and you can trigger capital gains tax and stamp duty. Plan it first.
How much does a construction accountant cost in Perth?
Reacco charges fixed monthly fees, not hourly rates, so you never get an invoice for a phone call. Typical packages:
| Package | What is included | Fixed fee |
|---|---|---|
| Turnover $0 to $200,000 | Financial statements, tax return, ASIC compliance, BAS, TPAR, pre-30 June tax review and annual tax planning session | $400 + GST / month |
| Turnover $200,000 to $500,000 | Same inclusions as above | $550 + GST / month |
| Turnover $500,000 to $2 million | Same inclusions, with advisory | $850 + GST / month |
| Turnover over $2 million | Same inclusions, with advisory | $1,200 + GST / month |
| Outsourced payroll | STP, PAYG withholding and super, including Payday Super | From $50 + GST / week |
| Xero clean-up (one-off) | Messy or behind books, or several years of unlodged returns | Quoted after a free review |
See full inclusions on our fixed-fee pricing page.
8 questions to ask a construction accountant before you hire them
- How many builders and tradies do you currently look after?
- Can you set up job costing and WIP reporting in Xero for me?
- Do you integrate with Tradify, ServiceM8, simPRO or my job management app?
- Will you check whether I owe super for my subcontractors?
- Do you prepare and lodge my TPAR?
- Will you plan my tax before 30 June, including utes, tools and equipment?
- Is my structure protecting my house if a job goes wrong?
- Are you a Chartered Accountant, and are you on the TPB register?
Who we work with
Reacco works exclusively with construction, trades and property businesses in WA:
- Builders: residential, commercial, renovation and custom home builders
- Trades: electricians, plumbers, carpenters, tilers, concreters, bricklayers, painters, roofers, landscapers and cabinet makers
- Contractors and subcontractors: civil, earthmoving, fit-out and labour hire
- Property: developers, investors and property groups
Why Perth builders and tradies choose Reacco
- Construction only. We don't do dentists or cafés. Every client is in construction, trades or property, so we know your industry.
- Chartered Accountants with 15+ years of experience. You deal directly with a CA ANZ member.
- Master Builders WA member and Xero Partner.
- Fixed fees. No hourly billing and no surprise invoices.
- Proactive. Tax planning before 30 June, and cash flow and job profit reporting through the year.
- Local. Based in Warwick, Perth, working AWST hours. We understand the WA building market.
- Registered tax agent: TPB registration number 26342980.
Not in construction? Our sister practice handles general small business accounting across Perth.
Areas we serve
We work with construction and trades businesses across Perth and Western Australia: Warwick, Joondalup, Wanneroo, Clarkson, Ellenbrook, Midland, Malaga, Osborne Park, Balcatta, Welshpool, Canning Vale, Baldivis, Rockingham, Mandurah, Bunbury and regional WA. You can meet us in Warwick or online. We know you're on site all day, so we work around your schedule.
Frequently asked questions
Why do builders and tradies need a specialist construction accountant?
Construction businesses deal with things general accountants rarely see: progress claims, retentions, work in progress (WIP), subcontractors, TPAR reporting, the personal services income rules, and super for contractors. A construction accountant understands these, so you avoid ATO penalties and know your real profit on every job.
How much does a construction accountant cost in Perth?
At Reacco, fixed monthly packages are priced by turnover: from $400 + GST per month for businesses turning over up to $200,000, $550 for $200,000 to $500,000, $850 for $500,000 to $2 million, and $1,200 for over $2 million. Every package includes financial statements, tax returns, BAS, TPAR and a pre-30 June tax review. All packages are fixed fee with no hourly billing.
What is a TPAR and do I need to lodge one?
A Taxable Payments Annual Report (TPAR) tells the ATO what you paid contractors. If your business is mainly in building and construction, or your payments for construction services make up 10% or more of your GST turnover, you generally need to lodge one by 28 August each year. Late lodgment can attract penalties.
Do I have to pay super for my subcontractors?
Sometimes. If a contractor is paid wholly or mainly for their labour, super guarantee can apply even when they have an ABN. It depends on the contract and how the work is done. Getting this wrong is one of the most common and expensive mistakes in construction, so have your arrangements reviewed.
Should my building business be a sole trader, company or trust?
It depends on your profit, risk and plans. Many WA tradies start as sole traders. Once profit is consistently above about $120,000 to $150,000, or you are taking on bigger contracts and more risk, a company or a trust with a corporate beneficiary can offer asset protection and tax savings. Get it modelled before you restructure.
Can I claim my ute and tools?
Generally yes, for the business-use portion. Eligible small businesses can usually write off assets under $20,000 each straight away. A work ute used by employees may also be exempt from FBT if private use is limited. Keep logbooks and receipts, and check the current rules before you buy.
How do I know if I am making money on each job?
Use job costing. Track labour, materials, subcontractors and variations against each quote in Xero or a job management app like Tradify, ServiceM8 or simPRO. Your accountant should give you job profitability and WIP reports so you can price the next job properly.
Is the ATO targeting the construction industry?
Yes. Building and construction is a long-standing focus of the ATO's shadow economy work, including cash jobs, unreported contractor payments and not lodging returns. In September 2026 the ATO reported an 80% jump in shadow economy prosecutions for non-lodgment. Being up to date with lodgments is your best protection.
Do you only work with builders in Perth?
We are based in Warwick, Perth, and work with construction and trades businesses across Western Australia. That includes Joondalup, Wanneroo, Ellenbrook, Midland, Malaga, Osborne Park, Welshpool, Canning Vale, Baldivis, Rockingham, Mandurah and regional WA.
About the author
Colm Delaney, CA is a Chartered Accountant (CA ANZ) and founder of Reacco Chartered Accountants in Warwick, Perth. Reacco works exclusively with construction, trades and property businesses in Western Australia, helping builders and tradies price jobs profitably, stay ATO-compliant and keep more of what they earn.
General information only: this article is not personal financial or tax advice. Rates and thresholds are correct as at 17 September 2026 and may change. Speak to a registered tax agent about your circumstances.