Most tradies looking at QuickBooks are really asking a bigger question: what does my bookkeeping need to do so the ATO side runs itself? Quoting from the ute is handy, but the software only earns its keep if it also gets your GST, BAS, contractor reporting and payroll right.
This guide covers those obligations for the 2025-26 and 2026-27 income years: GST and BAS, the Taxable payments annual report, Single Touch Payroll, vehicle logbooks, tool purchases and the instant asset write-off, and record keeping. Figures were checked against the ATO’s TPAR, logbook method and instant asset write-off pages. It describes software features in general terms rather than comparing plans or prices.
It is written for sole trader and small company tradies: sparkies, plumbers, chippies, landscapers and builders. If you are still choosing a package, our best accounting software in Australia guide breaks the decision down by business type.
Key takeaways
- Builders and other construction businesses that pay contractors generally lodge a TPAR by 28 August. Paper lodgment is no longer accepted.
- GST registration is compulsory once turnover reaches $75,000; after that you lodge a BAS.
- Employers must report pay through STP, and from 1 July 2026 pay super within 7 business days of payday.
- Cents per km for cars: 88c (2025-26) and 91c (2026-27), max 5,000 km. Heavy utes need actual costs.
- Instant asset write-off: each asset costing less than $20,000, turnover under $10 million, permanent from 1 July 2026.
- Keep most records for 5 years.
Tradie bookkeeping obligations at a glance
| Obligation | Applies when | Key date or figure |
|---|---|---|
| GST and BAS | GST turnover $75,000 or more | Quarterly BAS (e.g. 28 October for July-September) |
| TPAR | Paying contractors for building and construction (and some other services) | Lodge by 28 August |
| STP payroll | You employ anyone, including apprentices | Report each time you pay |
| Payday Super | Employers from 1 July 2026 | Fund receives super within 7 business days |
| Vehicle claims | Business use of a car or ute | Logbook 12 weeks, valid 5 years |
| Tools and equipment | Turnover under $10 million | Each asset under $20,000 written off |
| Records | Every business | Keep 5 years |
Source: ATO TPAR, ATO GST registration, ATO Payday Super, ATO logbook method, ATO $20,000 IAWO here to stay, checked 9 October 2026.
What should tradie accounting software handle?
Whatever package you choose, QuickBooks or another, the ATO’s guidance on choosing accounting software comes down to the same thing: it must record transactions accurately and let you report digitally. For a trade business, that usually means:
- quotes and invoices you can send from site, showing your ABN and GST
- receipt capture so dockets are not lost
- job costing that links materials, labour and subcontractors to each job
- GST codes set up correctly for every account
- contractor records (name, address, ABN, amounts paid) for TPAR
- STP-enabled payroll if you employ
Check the claims against your actual week. Set up two or three real jobs during a trial and see whether you can quote, invoice, record purchases and see the margin without workarounds. Our accounting software comparison checklist has a scoring method you can use.
How do GST and BAS work for tradies?
You must register for GST once your GST turnover reaches $75,000, according to the ATO’s GST registration page. Once registered, you charge 10% GST on taxable work, claim GST credits on business purchases and lodge a BAS. The ATO’s GST hub covers the detail.
Software helps because every transaction carries a GST code. A wrong code on a large materials bill flows straight through to your BAS. Review your GST report before every lodgment, and see our activity statement guide for each label.
Do you need to lodge a TPAR?
If your business pays contractors for building and construction services, you generally need to lodge a Taxable payments annual report by 28 August each year. Cleaning, courier and road freight, IT, and security, investigation or surveillance services are also covered, with a 10% of business income test set out on the ATO’s TPAR eligibility page.
The ATO says to keep each contractor’s name, address and ABN, plus the amount paid including GST. TPARs can be lodged through SBR-enabled software, Online services for business or a registered agent, and paper TPARs are no longer accepted after 28 August 2025. If a contractor does not quote an ABN, you may need to withhold 47% from payments over $75 (excluding GST) unless an exception applies.
What changes when you employ an apprentice?
Once you pay wages, payroll must report through Single Touch Payroll each time you pay. Check that your software is on the ATO’s STP product register. From 1 July 2026, Payday Super requires super guarantee contributions to reach the employee’s fund within 7 business days after payday, so set up payroll to pay super every pay run.
How do you claim your vehicle?
The ATO’s calculation methods page says sole traders and partnerships can use cents per kilometre or the logbook method for a car. Companies and trusts must use actual costs for all vehicles. Utes and panel vans designed to carry one tonne or more are not cars, so actual costs apply.
| Method | Who can use it | Key rules |
|---|---|---|
| Cents per km | Sole traders and partnerships, cars only | 88c for 2025-26, 91c for 2026-27; max 5,000 business km |
| Logbook | Sole traders and some partnerships, cars only | 12 continuous weeks; valid 5 years; claim business-use % of actual costs |
| Actual costs | Companies, trusts, and non-car vehicles | Receipts for all expenses; apportion private use |
Source: ATO small business motor vehicle guide, ATO D1 car expenses 2026, ATO logbook method, checked 9 October 2026.
A logbook must record the start and end dates, odometer readings, total kilometres, each journey and its purpose, and the business-use percentage. Keep evidence of fuel and all other car expenses.
How are tools and equipment claimed?
Small businesses with aggregated turnover under $10 million that use simplified depreciation can write off each asset costing less than $20,000 in the year it is first used or installed ready for use. The ATO’s small business newsroom says the $20,000 write-off is permanent from 1 July 2026. If you are GST-registered and claim the full credit, use the GST-exclusive cost. Only the business-use portion is deductible. Our instant asset write-off guide covers the detail, and our small business tax deductions guide and sole trader deductions guide cover other claims.
Worked example: a sole trader electrician in 2025-26
A GST-registered sparky with turnover of $260,000 buys a test kit for $3,300 and a trailer for $16,500, both including GST, and uses both only for business from May 2026.
GST-exclusive costs: $3,300 – $300 = $3,000 and $16,500 – $1,500 = $15,000. Each is under $20,000, so both can be written off in 2025-26: $3,000 + $15,000 = $18,000.
The car (not a heavy ute) has a valid logbook showing 70% business use. Running costs and depreciation total $12,000, so the car claim is $12,000 x 70% = $8,400.
Total of these deductions: $18,000 + $8,400 = $26,400. The $1,800 of GST ($300 + $1,500) is claimed separately on the BAS, not in the tax return.
Rule of thumb: Code every purchase to a job and a GST code on the day you buy it. Fixing a quarter of unsorted dockets the night before your BAS is where errors start.
What records do tradies need to keep?
The ATO says most business records must be kept for 5 years, in English or easily converted, and digital records must not be altered. For a trade business that includes quotes, invoices, receipts, bank statements, contractor details, payroll and STP records, and your vehicle logbook.
Common bookkeeping mistakes tradies make
- Using cents per km for a heavy ute: utes designed to carry one tonne or more need actual costs.
- Missing contractor ABNs: it makes TPAR harder and may trigger no-ABN withholding.
- Claiming GST-inclusive asset costs: GST-registered businesses use the GST-exclusive amount.
- Paying super quarterly after 1 July 2026: Payday Super requires payment each pay cycle.
- No logbook: without one, sole traders with cars are limited to cents per km and the 5,000 km cap.
FAQ about QuickBooks and bookkeeping for tradies
Is QuickBooks good for tradies?
It can be, as can several other packages. What matters is whether your setup handles quoting and invoicing on site, GST coding, BAS lodgment, contractor records for TPAR and STP-enabled payroll if you employ staff. Trial it with your own jobs, check it appears on the ATO STP product register if you run payroll, and ask your agent whether they can work in it.
Do tradies have to lodge a TPAR?
Businesses that pay contractors for building and construction services generally need to lodge a Taxable payments annual report by 28 August each year, reporting each contractor’s details and the amounts paid. Paper TPARs are no longer accepted after 28 August 2025, so lodge through SBR-enabled software, Online services for business or your registered agent.
Can I claim my ute using cents per kilometre?
Only if it is a car. The ATO treats utes and panel vans designed to carry one tonne or more as other vehicles, and sole traders must use actual costs for those. For cars, sole traders and partnerships can use cents per kilometre (88 cents for 2025-26, capped at 5,000 business kilometres) or the logbook method.
Can I write off new tools straight away?
If your business has aggregated turnover under $10 million and uses simplified depreciation, you can generally write off each asset costing less than $20,000 in the year it is first used or installed ready for use. The ATO says the $20,000 write-off is permanent from 1 July 2026. If you are registered for GST, use the GST-exclusive cost.
How long do tradies need to keep records?
Most business records must be kept for five years. That includes invoices, receipts, bank statements, contractor details for TPAR, payroll records and your vehicle logbook. Records must be in English or easily converted, and digital records must not be altered. Keeping photos of receipts in your software is fine if they are clear and complete.
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Nanak Accountants can set up your accounting software for a trade business, including GST codes, job costing, contractor records and STP payroll, and lodge your BAS and TPAR. Call 1300 626 258, book a free 15-minute consultation or ask about our QuickBooks training and setup.
This article is general information only and is not personal tax or legal advice. Figures and rules were checked against the ATO TPAR, GST registration, Single Touch Payroll, Payday Super, motor vehicle, logbook, instant asset write-off and record-keeping pages on 9 October 2026. Rates and thresholds change, so confirm the current position before acting.
