A Tradie's Guide to Handling Unexpected Repair Costs
10 October 2026 · 6 min read · By Heaney Accounting
Every tradie knows that the moment you rely on a piece of machinery is the exact moment it decides to break down. Unexpected repairs can drain your bank account quickly if you are not prepared, turning a profitable month into a struggle to pay the bills.
Why You Need a Sinking Fund
The secret to surviving these surprises isn't just luck; it is having a specific 'sinking fund.' This is a separate savings account where you put aside a small amount from every job specifically for repairs and maintenance, rather than dipping into your operational cash.
- Review your last 12 months of repair invoices to find your average monthly cost.
- Add 20% to that figure to create your monthly 'cushion'.
- Set up an automatic transfer from your main trading account every Monday morning.
- Keep this money strictly for repairs, not for daily overheads or wages.
- Assess the cost of repair versus the cost of replacement.
- Check if the repair is tax-deductible or if it needs to be treated as a capital improvement.
- Update your asset register to reflect the current value of the machine.
- Adjust your future job quotes to account for the downtime you experienced.
Pro Tip: If a repair costs more than $300, it might be classified as a capital expense rather than a simple repair. Always check with your bookkeeper before writing it off completely to ensure you maximize your tax benefits.
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