Tradies and Professional Services in ATO Spotlight

The ATO has recently highlighted two sectors that will be under closer scrutiny this year: construction and professional services. This includes everyone from tradies and builders through to engineers, consultants, and even accountants.

The key point is straightforward: accurate, consistent reporting is essential as small errors can quickly escalate.

Why These Industries Are in the Spotlight

According to the ATO, these sectors are showing recurring compliance issues across:

• Reporting all income

• Correctly claiming business expenses

• GST registration and reporting

• Research & Development Tax Incentive (R&DTI) claims

We see this too in our work with clients—fast-growing businesses often outpace their systems, which leads to genuine mistakes rather than intentional non-compliance.

Common Problem Areas

The ATO will be focusing on:

• Incorrect or ineligible R&DTI claims

• Overclaimed expenses or GST credits

• Unreported sales or income in BASs and tax returns

• Not registering for GST when required

• Personal expenses incorrectly claimed as business-related

• Lack of advice in subcontractor/contractor arrangements

Many of these issues can be avoided with good record-keeping.

What Businesses Should Do Now

If you’re in construction or professional services, now is a good time to check that your reporting processes are solid. In particular:

• Ensure all business income is recorded and reported

• Review your expense claims to confirm they’re accurate and business-related

• Register for GST if your turnover requires it

• Only claim R&DTI where you meet the eligibility criteria—and keep clear documentation

This proactive approach protects your business and avoids unnecessary follow-up from the ATO.

If the ATO Finds an Issue

If reporting obligations aren’t met, the ATO may ask you to amend your return, conduct an audit, or apply penalties and interest.

How Sullivan Dewing Can Help

As your business grows, tax and super obligations naturally become more complex.

We’re here to make sure you understand your obligations, stay compliant, and have confidence that everything lodged with the ATO is correct. If you have any concerns about your reporting, GST status, or R&DTI eligibility, please reach out.