Tax for Australian Concreters & Bricklayers

Australian concreters and bricklayers pay income tax on trading profit (sole trader) or company tax at 25% base rate (Pty Ltd). GST registration is compulsory at $75,000 turnover. Materials typically represent 30-40% of revenue, making accurate cost-of-sale tracking and closing stock valuation critical. TPAR lodgement is required if you pay subcontractors for building and construction services, and plant hire costs (concrete pumps, bobcats, formwork) are fully deductible in the year incurred.

Last reviewed: 27 May 2026

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Concreters and bricklayers are among the most sole-trader-heavy trades in Australian construction, with high materials cost ratios and significant plant hire expenses (concrete pumps, bobcats, mixers). Tax obligations follow the standard building and construction framework: income tax on trading profit (sole trader) or company tax at 25% base rate entity (Pty Ltd), GST registration once turnover hits $75,000, TPAR lodgement if you pay subcontractors, and SG on labour-only subcontractor payments at 12% (2025-26). The physical nature of the work generates specific deduction categories (PPE, knee pads, back supports) and weather-dependent income patterns create cash flow challenges that affect BAS timing and provisional tax estimates.

What business structure do Concreters & Bricklayers use?

The common patterns for Concreters & Bricklayers are: Sole trader: the most common structure for concreters and bricklayers, ABN registration only, suits one-person operators under roughly $100k profit, Partnership: frequently used when two tradespersons work together (e.g. concreter and bobcat operator, or two bricklayers sharing jobs), income split per partnership agreement, each partner lodges individually, Pty Ltd company: limited liability for defect claims, access to 25% base rate entity tax, worth considering from around $100k+ profit or where defect risk is significant (structural concrete, retaining walls), Trust: less common in these trades, occasionally used by established operators for income splitting and asset protection. The right structure depends on revenue, liability exposure, and personal circumstances, covered below.

How does TPAR apply to Concreters & Bricklayers?

Concreters & Bricklayers paying subcontractors for building and construction services may need to lodge a Taxable payments annual report. See the dedicated TPAR mechanics below.

How does TPAR apply to concreting and bricklaying businesses?

If your business is primarily in building and construction (50%+ of income or activity), has an ABN, and makes payments to subcontractors for construction services, you must lodge a Taxable Payments Annual Report (TPAR) by 28 August each year. The report lists total payments to each contractor: name, ABN, gross amount, and GST component. For concreters who engage bobcat operators, concrete pump operators, or labourers as subcontractors, TPAR is a core compliance obligation. Bricklayers who engage labourer subbies to mix mortar and carry materials also need to report. The ATO cross-matches TPAR data against subcontractor returns to detect undeclared income. Late or missing TPARs attract penalties. Plant hire payments (e.g. paying a concrete pump operator who supplies the pump and operator together) are reportable on TPAR if the operator is a subcontractor providing construction services, not simply equipment rental from a hire company.

Businesses primarily in building and construction that pay contractors must lodge TPAR by 28 August, reporting each contractor's ABN, gross payments, and GST. (TAA 1953 Schedule 1 Division 396; ATO guidance ATO building and construction TPAR guide)

What plant hire and equipment costs can I claim?

Concreters and bricklayers frequently hire plant rather than owning it. Concrete pump hire, bobcat and excavator hire, scaffolding, and formwork rental are all deductible in full in the year incurred as operating expenses. If you own plant (a concrete mixer, vibrating screed, plate compactor, or small excavator), the asset is depreciated over its effective life. The instant asset write-off ($20,000 per asset for 2025-26, for small business entities with turnover under $10 million) allows immediate deduction for most individual items of plant. A $15,000 plate compactor or a $18,000 concrete mixer can be written off in full. For assets above $20,000 (or if instant write-off is unavailable), the simplified depreciation pool applies: 15% in the first year, 30% in subsequent years. GST on all plant hire and purchases is claimable as an input tax credit if you are GST-registered.

Plant hire is deductible in full in the year incurred. Owned plant is depreciated over effective life or claimed under the instant asset write-off for eligible small business entities. (ITAA 1997 Division 40 (decline in value); ITAA 1997 s 328-180 (SBE instant asset write-off); ATO guidance ATO depreciation and capital allowances guide)

How do partnerships work for tax in concreting and bricklaying?

Partnerships are common in concreting (two operators sharing a bobcat and pump) and bricklaying (two brickies sharing jobs and labourers). The partnership itself does not pay income tax. Instead, net partnership income is split between partners according to the partnership agreement, and each partner includes their share on their individual tax return. The partnership must lodge its own tax return (partnership return) showing total income and expenses, plus each partner's share. Each partner then pays income tax at their individual marginal rates on their share. GST registration applies to the partnership entity (not individual partners) once combined turnover hits $75,000. The partnership ABN is used for invoicing, BAS lodgement, and TPAR. Both partners are jointly liable for the partnership's tax debts. Critical point: if the partnership agreement allocates income in a way that does not reflect each partner's contribution (e.g. splitting 80/20 to a lower-earning spouse who does not work in the business), the ATO may apply the anti-avoidance provisions under s.100A of the ITAA 1936.

Partnership net income flows through to individual partners based on the partnership agreement. The partnership lodges its own return but does not pay tax itself. (ITAA 1936 s 92 (partnership income); ITAA 1936 s 100A (anti-avoidance for trusts and arrangements); ATO guidance ATO partnerships guide)

How do weather-dependent income patterns affect my tax obligations?

Concreting and bricklaying are highly weather-sensitive. Wet weather stops pours and mortar work entirely, creating uneven income across the year. This affects tax obligations in three ways. First, BAS timing: if you lodge quarterly, a wet quarter with low income but ongoing plant hire and material purchases may result in a GST refund (credits exceed collected GST). Lodge on time to get the refund promptly. Second, PAYG instalments: the ATO calculates quarterly PAYG instalment amounts based on prior-year income. If current-year income drops significantly due to weather, you can vary your PAYG instalment amount downward. Be accurate, as under-estimation by more than 15% attracts a general interest charge. Third, income protection insurance becomes particularly relevant for physical trades exposed to weather shutdowns. Premiums for income protection policies are deductible.

PAYG instalment amounts can be varied downward if current-year income is significantly lower than prior year. Under-estimation by more than 15% may attract interest charges. (TAA 1953 Division 45 (PAYG instalments); TAA 1953 s 45-112 (variation); ATO guidance ATO PAYG instalments guide for business)

Contractor vs employee: the written contract is decisive

The High Court reset the contractor/employee test in 2022. Where there is a comprehensive written contract that is not a sham, classification turns principally on the rights and obligations established by that contract — not on the day-to-day conduct of the parties. Get the engagement contract right at the start; do not rely on post-contract behaviour to recharacterise the relationship later. This matters because misclassification exposes the engager to PAYG withholding shortfalls, super guarantee charge (with the contractor-deemed-employee extension under SGAA 1992 s 12(3)), and payroll tax. It also affects whether the worker can deduct business expenses and whether PSI rules engage.

Contractor vs employee classification is determined principally by the rights and obligations in the written contract, not by post-contract conduct. (CFMMEU v Personnel Contracting Pty Ltd [2022] HCA 1; ZG Operations Australia Pty Ltd v Jamsek [2022] HCA 2 (companion case); ATO guidance TR 2023/4 (employee vs independent contractor))

Home running costs: PCG 2023/1 fixed-rate vs actual cost

Most workers in this trade do some admin from home — quoting, invoicing, scheduling, BAS prep. From 1 July 2024 the ATO fixed-rate method is 70c per hour worked from home and covers electricity, gas, internet, mobile, stationery and computer consumables. You cannot also claim those bills separately under the fixed rate. You can still separately depreciate office furniture and equipment used at home. FY 2024-25 and FY 2025-26 rate: 70c/hr. FY 2022-23 and FY 2023-24 rate: 67c/hr. The fixed rate requires a contemporaneous record of actual hours worked from home — a timesheet, calendar or app log. Estimates and four-week samples are no longer accepted for the fixed rate method (they remain valid for the actual cost method).

The fixed-rate method for home office running costs is 70c per hour from 1 July 2024 and requires a record of actual hours worked from home. (PCG 2023/1 (as amended); ITAA 1997 s 8-1; ATO guidance TR 93/30; TR 2024/3)

Allowable expenses

Category	Examples	Tax treatment
Tools and equipment	Concrete screeds, vibrating pokers, brick saws, trowels, levels, string lines, plate compactors, concrete floats	Immediate deduction if under $300 per item; instant asset write-off up to $20,000 (2025-26) for SBE; depreciation over effective life above that
Plant hire	Concrete pump hire, bobcat hire, excavator hire, formwork rental, scaffolding hire, crane hire for blockwork	Deductible in full in the year incurred as an operating expense. GST credits claimable if registered
Work vehicle	Fuel, servicing, registration, insurance, tyres, interest on finance, decline in value	Logbook method (actual costs x business-use %) or cents-per-km (88c/km, max 5,000 km). Car limit $69,674 applies to passenger vehicles
PPE and physical-trade gear	Steel-cap boots, hi-vis, hard hats, safety glasses, heavy-duty gloves, knee pads, back supports, UV protective clothing, sunscreen (bulk)	Deductible if protective or compulsory uniform. Knee pads and back supports are occupation-specific PPE for concreters and bricklayers
Materials (cost of sale)	Ready-mix concrete, sand, cement, bricks, blocks, mortar mix, reinforcing steel, mesh, expansion joints, damp-proof course	Cost of goods sold, deductible as revenue expense. Account for closing stock at year-end. GST credits claimable if registered
Insurance	Public liability, income protection, tool and plant cover, workers' compensation (if employing)	Deductible as business operating expense. Income protection is particularly relevant for physical trades
Licences and registrations	State trade licence renewals, White Card, high risk work licences (e.g. forklift for block deliveries)	Deductible as ongoing trade licence fees. Initial qualifying training is not deductible
Phone, software, admin	Mobile phone (business %), quoting and invoicing apps, accounting software (Xero, MYOB), photo documentation tools	Deductible, apportioned to business use
Union and association fees	CFMEU dues, Master Builders membership, Concrete Institute membership	Deductible as professional membership

Vehicle and travel costs

Most full-time concreters and bricklayers should use the logbook method: keep a 12-week representative logbook, then apply the business-use percentage to all running costs for the year. Tradespersons hauling tools, compactors, and materials between sites typically show 75-90% business use. The logbook is valid for five years unless circumstances change significantly. Cents-per-km (88c/km, max 5,000 km) caps the deduction at $4,250, which rarely covers actual costs for a tradesperson running multiple sites. A ute or tray-top with payload over 1 tonne (common for concreters and bricklayers hauling equipment) avoids the $69,674 car depreciation limit entirely.

Capital allowances and equipment

The instant asset write-off threshold for small business entities (turnover under $10 million) is $20,000 per asset for 2025-26. A $14,000 plate compactor, a $7,500 concrete vibrating screed system, or a $4,200 brick saw can each be written off in full in the year of purchase. For assets above $20,000 (or if the instant write-off is not available), the simplified depreciation pool applies: 15% in the first year, 30% in subsequent years. A $35,000 mini excavator purchased by a sole trader concreter would enter the pool and be depreciated at 15% ($5,250) in year one, then 30% of the diminishing balance in subsequent years.

Worked example

Damo — Ballarat, VIC

sole trader concreter (FY 2025-26)

Annual revenue $135,000 from domestic concreting (driveways, paths, shed slabs) and subcontract work for a local builder ($45,000 of the total). Ready-mix concrete and materials cost $42,000. Concrete pump hire $6,200. Bobcat hire $3,800. Work ute running costs $8,900 (logbook shows 80% business use). Tools and a new plate compactor $5,400 (all under $20,000 per item). Public liability and income protection insurance $2,800. White Card renewal and first aid $280. Phone and Xero subscription $1,600 (70% business). Knee pads, boots, PPE $650. Accounting fees $1,100.

Deductions: materials $42,000 + concrete pump hire $6,200 + bobcat hire $3,800 + ute ($8,900 x 80%) $7,120 + tools/compactor $5,400 + insurance $2,800 + training $280 + phone/software ($1,600 x 70%) $1,120 + PPE $650 + accounting $1,100 = $70,470 total deductions.

  Taxable income: $135,000 - $70,470 = $64,530.

  Income tax: $0 on first $18,200. $26,800 x 16% = $4,288. $19,530 x 30% = $5,859. Total income tax = $10,147.

  Medicare Levy: $64,530 x 2% = $1,291.

  Total tax: $10,147 + $1,291 = $11,438. Effective rate: 16.7%.

  Damo's materials ratio (31% of revenue) is typical for concreters. He should also consider making a personal deductible super contribution: a $10,000 contribution reduces taxable income to $54,530, saving roughly $3,000 in tax (at 30% marginal rate) while the contribution is taxed at only 15% inside super.

Common ATO audit triggers for Concreters & Bricklayers

High vehicle claims without a logbook to substantiate business-use percentage
TPAR mismatch: head contractor reports payments to your ABN that exceed your declared income
Cash jobs not declared, particularly domestic driveways, paths, and garden walls (ATO cross-references bank deposits, lifestyle indicators, and industry benchmarks)
Large plant and equipment claims without receipts or an asset register
Partnership income splits that do not reflect actual contribution of each partner (s.100A risk)
Repeated business losses in wet years claimed against other income without meeting non-commercial loss tests (Division 35)

Frequently asked questions

Can I claim concrete pump and bobcat hire as a deduction?+

Yes. Concrete pump hire, bobcat hire, excavator hire, formwork rental, and crane hire are all deductible in full in the year incurred as operating expenses. GST on hire charges is claimable as an input tax credit if you are GST-registered. If you own the equipment, it is a depreciating asset written off over its effective life, or claimed under the instant asset write-off ($20,000 threshold for 2025-26) if eligible.

Are knee pads and back supports tax deductible for concreters?+

Yes. Knee pads, back supports, and other protective equipment specific to the physical demands of concreting and bricklaying are deductible as occupation-specific PPE under s 8-1 of the ITAA 1997. The item must be protective in nature and directly related to earning your income. General everyday clothing (even if worn on site) is not deductible, but steel-cap boots, hi-vis, hard hats, UV protective clothing, and heavy-duty gloves all qualify.

How should a two-person concreting partnership handle tax?+

The partnership lodges its own tax return showing total income and expenses, plus each partner's share per the partnership agreement. Each partner then pays income tax at their individual marginal rates on their share. GST registration applies to the partnership entity (not individual partners) once combined turnover hits $75,000. The partnership ABN is used for invoicing and BAS. Both partners are jointly liable for partnership tax debts. Keep the income split consistent with each partner's actual contribution to avoid ATO scrutiny under s.100A.

What happens to my PAYG instalments during a wet season with low income?+

You can vary your PAYG instalment amount downward if current-year income is significantly lower than the prior year. Lodge the variation through your BAS. Be accurate with the estimate: if you under-estimate by more than 15% of the amount that should have been payable, the ATO may charge a general interest charge on the shortfall. If you lodge quarterly BAS and a wet quarter produces a GST refund (credits exceed collected GST), lodge on time to get the refund promptly.

Last reviewed: 27 May 2026