Mechanical Workshops

We set up job tracking in Xero so each workshop job is recorded with both the labour and parts costs attached to it. This gives you a clear picture of the gross margin on every service type and helps you identify where pricing adjustments may be needed.

Most mechanics and automotive technicians are covered by the Vehicle Manufacturing, Repair, Services and Retail Award. It includes different pay levels based on qualifications and experience, plus overtime and penalty rates. We set up your payroll with the correct classifications applied so every pay run is accurate and compliant.

Under the temporary full expensing provisions that applied in recent years, many businesses could write off the full cost of eligible assets immediately. The rules around instant asset write-off change regularly, so we review your planned equipment purchases each year to advise on the best timing and method for maximising your deduction.

GST applies to both labour and parts charged to customers. For parts you purchase for resale, you can claim back the GST as an input tax credit. We ensure your invoicing and purchasing processes are set up correctly in Xero so GST is captured accurately without any manual adjustments at BAS time.

For some workshops, separating the service and retail sides of the business into different entities can offer structural and tax benefits. Whether this makes sense for you depends on your turnover, ownership arrangements, and growth plans. We model the options and give you a clear recommendation.