How to Run a Lawn Mowing & Gardening Services Business in Australia Tax, Deductions & Accounting Support from Trinity Accounting Practice
Why Lawn and Garden Services Are a Strong Business Choice
Australia's love for outdoor living and well-maintained gardens means there is steady demand for lawn mowing, gardening, landscaping, and yard maintenance services across suburban and rural areas. Whether you are a solo operator or managing a small team, running a lawn care business can be genuinely profitable, but only if you manage your finances, compliance, and operations effectively.
At Trinity Accounting Practice, we help garden and outdoor service providers across Australia with business setup, bookkeeping, tax, and growth strategy. This guide covers everything you need to know to run a compliant and profitable lawn and garden services business.
Starting a Lawn Mowing or Gardening Business
Choose the Right Business Structure
Your business structure affects your tax rate, personal liability, and growth flexibility. The most common options are:
- Sole trader: Simple and low-cost to set up, ideal for solo operators starting out. However, you have unlimited personal liability for business debts.
- Partnership: Suited for family-run operations or shared ventures. Each partner reports their share of the income on their individual tax return.
- Company: Offers limited liability and a flat tax rate of 25% for small businesses. Provides greater tax planning flexibility as the business grows.
- Trust: Common for long-term asset protection and flexible income distribution among family members.
Our business advisory team can help you select and register the most suitable structure for your goals. As registered ASIC agents, we handle company and trust setups on your behalf.
Business Registrations
To operate legally, you will need:
- An Australian Business Number (ABN)
- GST registration if your annual revenue exceeds or is expected to exceed $75,000
- A registered business name (if trading under a name other than your own)
- Public liability insurance
- Workers compensation insurance if you hire employees
Licences and Compliance
Lawn mowing is generally a low-regulation industry, but depending on the scope of your services you may need:
- A chemical application licence if you spray herbicides, pesticides, or fertilisers commercially
- A White Card (General Construction Induction) if you work on construction sites
- Council permits for operating machinery in public spaces or disposing of green waste
- Documented safe work policies, particularly if you use chainsaws, hedge trimmers, or other powered equipment
Tax-Deductible Expenses for Lawn and Garden Operators
Running a lawn and garden business involves a wide range of expenses, many of which are tax-deductible. Keeping accurate records of these costs throughout the year maximises your deductions at tax time.
Tools and Equipment
- Lawn mowers, ride-on mowers, and robotic mowers
- Whipper snippers, hedge trimmers, and chainsaws
- Blowers, edgers, and aerators
- Trailers, toolboxes, and storage systems
- Hand tools including spades, pruners, rakes, and shears
Individual items costing less than $20,000 can be claimed immediately under the instant asset write-off for the 2024-25 financial year. Higher-value items such as ride-on mowers or trailers are depreciated over their effective life. We set up depreciation schedules to ensure you claim the maximum deduction each year.
Vehicle Costs
- Fuel, registration, and insurance
- Maintenance, servicing, and repairs
- GPS systems and tool racks
- Finance interest on vehicle loans
If your vehicle is used for both business and personal purposes, you must keep a logbook for a minimum of 12 continuous weeks to establish your business-use percentage. The logbook remains valid for five years unless your circumstances change significantly. Alternatively, if your business travel is under 5,000 kilometres per year, you can use the cents per kilometre method at 88 cents per kilometre for 2024-25.
Uniforms and Personal Protective Equipment
- Branded shirts, jackets, and hats
- Steel-capped boots, gloves, and safety goggles
- Sunscreen, safety vests, and hearing protection
Consumables and Materials
- Mulch, fertiliser, weed killer, and soil conditioners
- Plants, seedlings, compost, and turf
- Signage, stakes, and landscaping materials
Office and Administration Expenses
- Phone and internet (business-use portion)
- Website hosting and online advertising
- Business cards and printed marketing materials
- Accounting software subscriptions
Professional Services
- Accounting and tax advice
- Bookkeeping services
- Legal support for contracts and business agreements
We ensure every claim is properly documented, correctly categorised, and applied in your tax return.
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Managing GST, BAS, and Tax
If your annual revenue exceeds $75,000, you must register for GST, charge 10% GST on your services, and lodge quarterly Business Activity Statements (BAS). You can claim GST credits on eligible business purchases to offset the GST you collect.
Tax Rates by Structure
- Sole traders: Pay income tax at individual marginal rates on business profits
- Companies: Pay a flat rate of 25% for base rate entities (aggregated turnover under $50 million)
- Trusts: Distribute income to beneficiaries who are then taxed at their individual rates
Our accounting and taxation team provides BAS preparation, tax lodgement, and year-end tax planning for all entity types.
Subcontractors, Payroll, and Hiring
If you engage other workers, whether as employees or subcontractors, there are important compliance obligations to manage:
- Payroll: Employees must be paid in accordance with the applicable award, with PAYG tax withheld and reported through Single Touch Payroll (STP)
- Superannuation: Employer super guarantee contributions of 11.5% (for 2024-25) must be paid quarterly for all eligible employees and certain contractors
- Taxable Payments Annual Report (TPAR): If you pay subcontractors for building and construction services (which can include landscaping), you may be required to lodge a TPAR each year
- Worker classification: It is essential to correctly classify workers as employees or contractors. Incorrect classification can result in penalties, back-payment of entitlements, and superannuation liabilities
We handle payroll processing, STP reporting, superannuation compliance, and TPAR lodgement for our lawn and garden clients.
Bookings, Invoicing, and Cash Flow Management
Using the right tools saves time and helps you get paid faster. Job management platforms designed for field service businesses can handle scheduling, quoting, invoicing, and payment collection in one system.
As certified Xero advisors, we connect your invoicing and payment tools to Xero so your income, expenses, and GST are tracked automatically.
Cash Flow Tips
- Use recurring billing for regular lawn maintenance clients to create predictable revenue
- Request deposits or progress payments for larger landscaping projects
- Maintain a reserve fund to cover off-season slowdowns, equipment repairs, and unexpected expenses
- Invoice promptly after completing each job and follow up on overdue accounts regularly
Marketing Your Lawn and Garden Business
Building a strong local presence is essential for attracting and retaining clients. Effective marketing strategies include:
- Setting up a Google Business Profile to appear in local search results and maps
- Running targeted Facebook and Instagram ads in your service area
- Distributing flyers in local cafes, community noticeboards, and letterboxes
- Listing your services on job platforms to reach customers actively searching for lawn and garden help
- Offering referral rewards to encourage existing clients to recommend your services
Marketing costs are tax-deductible. We track your marketing spend within your Xero reports so you can measure which channels deliver the best results.
How Trinity Supports Lawn and Garden Businesses
We have worked with gardeners, landscapers, and mowing contractors across Australia. Our services cover every aspect of running the financial side of your business:
- Business setup: ABN, GST, and TFN registration, company or trust formation, and insurance and compliance referrals
- Bookkeeping and Xero: Weekly or monthly reconciliations, quote and invoice setup, reporting, and cash flow tracking
- Tax and BAS: GST reporting, depreciation of vehicles and equipment, and year-end tax planning
- Payroll and contractor compliance: STP reporting, superannuation payments, and TPAR submission
For operators who are scaling their business or managing multiple crews, our Virtual CFO division, VCFO Australia, provides budgeting, cash flow forecasting, and strategic financial management.
If you need finance for a vehicle, trailer, or equipment purchase, our brokerage division, Nexus Wealth Partners, can assist with equipment finance and business lending.
Book a consultation with our team to discuss how we can support your lawn and garden business.
Trinity Accounting Practice
Accounting Firm in Beverly Hills, Sydney
Phone: 02 9543 6804
Address: 159 Stoney Creek Road, Beverly Hills NSW 2209
Website: www.trinitygroup.com.au
Weekend and after-hours appointments available
Our Virtual CFO division, VCFO Australia, provides strategic financial management, budgeting, forecasting, and compliance support for growing businesses and not-for-profits.
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Our mortgage brokerage division, Nexus Wealth Partners Pty Ltd, assists clients with home loans, refinancing, and business finance.
Disclaimer: Information provided on this website is intended as a general overview only and does not replace professional advice tailored to your personal circumstances.
