Tax Services for Contractors & Freelancers
Specialist tax advice for contractors, IT contractors, and freelancers. Navigate PSI rules, maximize deductions, and optimize your business structure.
Tax Services for Contractors - Quick Summary
Tax7 offers specialized tax services for contractors, freelancers, and IT contractors starting from $220+GST for sub-contractors (PSI) or $390+GST for sole trader contractors. We help you navigate Personal Services Income rules, maximize legitimate deductions, and advise on the best business structure (sole trader, company, or trust) to minimize your tax liability while ensuring full ATO compliance.
What is Contractor Tax in Australia?
Contractor tax refers to the tax obligations of self-employed individuals working as contractors or freelancers with an ABN. Unlike employees, contractors are responsible for their own tax, GST (if applicable), and superannuation. The Australian Taxation Office (ATO) has specific Personal Services Income (PSI) rules that apply when your income primarily comes from your personal skills and efforts rather than a business structure.
IT contractors, consultants, and other professional contractors often face PSI rules which can limit certain deductions. Our specialized service helps contractors maximize legitimate tax benefits while maintaining compliance with all ATO requirements.
Who Needs Contractor Tax Services?
IT Contractors
- Software developers and programmers
- IT consultants and system administrators
- Tech freelancers with ABN
Professional Contractors
- Business consultants
- Marketing and creative contractors
- Independent professionals with ABN
Trades & Services
- Licensed tradespeople (electricians, plumbers)
- Construction contractors and subcontractors
- Service providers with ABN
How Our Contractor Tax Service Works
Initial Consultation
We review your contractor setup, income sources, and current structure. We assess if PSI rules apply and identify immediate tax optimization opportunities.
Tax Preparation & Planning
We prepare your tax return with all contractor-specific deductions, handle BAS/GST if applicable, and provide strategic advice on business structure and expenses.
Ongoing Support
Year-round advice on contracts, deductions, GST changes, and business growth strategies. We're available whenever you need tax guidance.
Special Considerations for IT Contractors
IT and tech contractors face unique tax situations we specialize in
IT Contractor Tax Strategies
Business Structure Choice
Should you operate as sole trader vs Pty Ltd company? We analyze your income, PSI status, and future plans to recommend the best structure for tax minimization.
Equipment & Software Deductions
Computers, monitors, software subscriptions, cloud services, and development tools are all deductible. We ensure you claim full depreciation benefits.
GST Registration Timing
If your turnover exceeds $75,000, GST registration is mandatory. We advise on timing and handle all quarterly BAS lodgments.
Multiple Client Management
Working with multiple clients helps pass the PSI tests and opens up more deduction opportunities. We help structure contracts appropriately.
Common Tax Deductions for Contractors
Work-Related Deductions
Business & Professional Costs
Transparent Contractor Tax Pricing
100% Tax Deductible
All fees are tax deductible business expenses
No Upfront Payment
Fee from refund option available
Specialist Expertise
Contractors and PSI specialists
Sub-Contractor (PSI)
+ GST
Single client contractor (PSI rules apply)
- PSI determination and compliance
- Individual tax return with contractor income
- Deduction optimization
- BAS if applicable
Sole Trader Contractor
+ GST
Multiple clients or established business
- Complete business tax return
- All business income and deductions
- BAS preparation and lodgment
- Strategic business tax planning
Need company or trust structure advice? We also provide entity setup and ongoing compliance for contractors operating through companies or trusts.
View Companies & Trusts Services →What Documents Do Contractors Need for Tax Returns?
Income Documents:
- Invoices issued to clients
- Bank statements showing income received
- PAYG payment summary (if any employee income)
- ABN and GST registration details
Expense Documentation:
- Receipts for equipment and supplies
- Home office expense records
- Vehicle logbook (if claiming car expenses)
- Professional insurance and fees invoices
Don't have all records? We can help reconstruct expenses from bank statements and advise on what documentation is needed going forward.
Related Tax Services for Contractors
Sole Trader Services
Complete tax services for sole trader contractors with BAS and strategic planning
Learn More →Company Tax Services
Set up and manage a Pty Ltd company structure for tax efficiency
Learn More →Tax Planning
Strategic tax planning to minimize liability and grow your contracting business
Learn More →Ready to Optimize Your Contractor Taxes?
Get expert advice on PSI rules, deductions, and business structures from our contractor tax specialists.
Book Your Contractor Tax Consultation
Speak with a contractor tax specialist today