Don’t Leave Money on the Table: Overlooked Tax Deductions for Construction and Property Companies

Jason Cui
Sep 24
2 min read

Running a construction or property business is demanding — long projects, tight margins, and constant compliance pressures. In the rush, many owners overlook legitimate tax deductions that could reduce costs and improve cash flow. At Jucentra, we specialise in helping businesses in this sector spot what others miss.

1. Prepaid Expenses

If you prepay certain expenses (like insurance, rent, or interest) for up to 12 months, you may be able to claim the deduction in the current year. For construction companies with seasonal cash flow, this can smooth tax outcomes.

2. Depreciation of Tools and Equipment

Small items like drills, ladders, and laptops are easy to overlook but can often be written off immediately under simplified depreciation rules. For larger equipment, accelerated depreciation concessions may apply.

3. Motor Vehicle and Travel Costs

Construction businesses frequently use utes, vans, and site vehicles. Deductions are available for fuel, maintenance, insurance, and even logbook-based private use apportionment. Site travel and client meetings may also be deductible.

4. Protective Clothing and Safety Gear

Hard hats, steel-capped boots, high-visibility gear, and safety glasses — if required for work, these are claimable expenses. They’re small individually but add up over time.

5. Training and Licensing

Ongoing training for staff, renewal of professional licences, and certifications (e.g., construction induction, WHS, property manager licences) are all deductible. Investing in skills also strengthens your business long-term.

6. Subcontractor and Labour Costs

Payments to subcontractors, labour hire, and consultants are deductible — but must be correctly documented (including compliance with ATO’s Taxable Payments Reporting System for construction). Many firms lose deductions due to poor record-keeping.

7. Property-Specific Deductions

For property management and development entities, additional deductions may include:

Loan interest on development finance
Council rates and land tax
Repairs and maintenance (not capital improvements)
Depreciation on buildings and fit-outs

8. Professional Fees and Compliance Costs

Tax advice, accounting, legal fees, industry memberships, and software subscriptions (like project management or accounting tools) are deductible but often under-claimed.

Why It Matters

Missing deductions means leaving money on the table. For construction and property companies where margins can be tight, every dollar counts. By combining industry knowledge with deep research into ATO rulings, Jucentra ensures our clients claim everything they’re entitled to — without stepping outside the rules.