Clever purchases to help secure your site and lower your tax bill.
Every year, millions of dollars in tools, equipment and materials disappear from building sites around the country, according to the Housing Industry of Australia. And on top of the cost of replacing what’s been stolen, there can be indirect costs too, in the form of project delays or penalties. You can help reduce the risk of your assets being stolen on your watch with some purchases to help improve your construction-site security.
Plus, many security-related buys will be tax deductible against your business income. There are different rules applied by the Australian Taxation Office (ATO) when it comes to making a claim, so seek professional advice to make sure you’re claiming in the correct way and getting all the deductions you’re entitled to. Here are our top picks to help with construction site security.
1. Security cameras
Useful as both a deterrent and an aid to catch the culprits if you are unlucky enough to suffer theft or vandalism, a quality security camera system lets you keep an eye on your construction site at any time from anywhere via your smartphone. Solar-powered options are a good choice as you can take them with you to your next job once you’ve wrapped up your current site. Look for building-site surveillance cameras that have thermal and motion detection, and that can distinguish between two- and four-legged visitors to save on unnecessary alerts. Security camera systems (and lighting) generally won’t qualify as a tax deduction if set up at home, even if your business is home based, but if installed at a construction site they can usually be claimed under the ATO’s uniform capital allowances rule.
2. Warning and deterrent signs
Warning signs are mandatory around construction sites for health and safety reasons – check with your local authority for a full list, including for any specialist operations that might be taking place, such as asbestos removal. Also, if you've put up security cameras, you’ll need to let your workers and visitors know you’re using CCTV and display a notice accordingly. But even if you’re not running a security camera system, a sign claiming the site is under video surveillance could help deter opportunistic thieves.
3. Construction site fencing
Properly secured construction site fencing with a lockable gate is a great visual as well as physical barrier to an after-hours worksite. It can also be a must-have for the lead contractor on a job to prevent unauthorised access to the site for safety reasons. A securable temporary fencing package of panels, clamps, bases and supports could be an ideal longer-term investment for your business. The ATO allows structural items like fencing to be claimed, with the cost depreciated under capital works deductions.
4. Lighting
Darkness is the burglar’s friend, so shedding some light on the worksite with a motion-activated security sensor floodlight or two could be just the thing to help scare off unwelcome visitors – particularly helpful if the area is being newly developed and street lighting may not be functioning as yet. As with security cameras, try solar options that can run without hard-wired power and be set up and taken down easily.
5. Lockable tool security
Sometimes the simplest options are the best – tough storage in the shape of a lockable steel box can keep your precious tools safe from light fingers on site or in your vehicle. If you need extra security with a padlock, try one with a shackle made from boron carbide, which is 50 per cent stronger than hardened steel. One of the best defences is vigilance, so get into the habit of securing your toolbox whenever it’s left unattended, even for a short period of time. Both tools and products to keep them secure are usually allowable as a tax deduction.
6. Storage solutions
If you have expensive tools, materials and deliveries on site, a larger storage unit like a lockable shed helps keep them out of sight of casual thieves and protected from vandalism or theft. Claims for tax deductions depend on whether the shed can be dismantled or not, but if your business and the purchase are eligible, you could deduct the whole cost of the item under instant asset write-off rules. As part of the 2023-24 budget, the Australian government announced the instant asset write-off threshold will increase to $20,000 from 1 July 2023 until 30 June 2024. Note that this measure is not yet law.
7. Name tagging and tool engravers
Creating an indelible label for your important tools and equipment can help deter theft and could also mean any stolen kit is returned to you in the event that the police recover them later. Try using an engraving tool or high-quality permanent marker to tag your kit with your building licence number.
So, if you’re thinking you need extra security measures on site, try some strategic shopping to help improve your construction site security –and it could also knock dollars off your tax bill.
The information in this article is general in nature. It doesn’t take into account your specific financial position, needs or circumstances. You should look at your own financial position, objectives and requirements and seek professional advice before making any financial decisions.
