Tax Time for Tradies: What You Can and Can’t Claim
- Jenine L.
- Jul 30
- 3 min read
When tax season rolls around, Aussie tradies are often surprised by what they can and can’t claim. You’re likely working long hours, investing in tools, using your ute for work, and keeping up with training, so it makes sense to get the best return possible.
But the ATO is watching closely. Here's a straight-up guide to help tradies understand what’s deductible, and what will land you in hot water.
What Tradies Can Claim
Tools and Equipment
Power tools, hammers, saws, ladders, you name it.
Under $300? You can claim the full amount right away.
Over $300? You must depreciate it over its useful life.
If you're eligible for the instant asset write-off, you may be able to claim the full amount regardless of cost (check yearly thresholds).
Utes and Work Vehicles
If you’re using a ute for work (not just commuting), you can claim:
Fuel and running costs (using the logbook method is best)
Lease payments or loan interest
Registration and insurance
Depreciation
🚫 Reminder: You must apportion costs between business and private use.
Protective Clothing and Safety Gear
Deductible: Hi-vis gear, steel-cap boots, hard hats, gloves, UV-protective clothing.
Also deductible: Laundry costs (actual expenses or ATO fixed rates).
Branded uniforms (with your logo) are also claimable.
Mobile Phones and Devices
Claim the work-related portion of your mobile, tablet or laptop.
Use a 4-week diary to establish your percentage (e.g. 70% work use).
Data, apps, and phone plan costs can also be claimed proportionally.
Insurance
Income protection (only if paid outside of super)
Public liability, tools insurance, and work-related vehicle insurance
Workers comp if you employ others
Work-Related Training
White card, first aid, safety tickets, trade licence renewals, all deductible.
Also claim: Books, travel, subscriptions and training-related expenses, if directly related to your current trade.
What Tradies Can’t Claim
Travel from Home to a Regular Worksite
Usually non-deductible: Daily commute to the same job.
Exception: If you carry bulky tools with no secure storage on-site.
Document what you carry and why.
Plain Clothing and Footwear
Jeans, singlets, non-branded work clothes, even if only worn for work, are not deductible.
Footwear that isn't safety-rated won’t qualify either.
Private or Hobby Tools
Tools used for personal or home DIY? Not deductible.
Mixed use tools must be apportioned fairly.
Personal Phone Use
You can’t claim 100% of your phone bill if it’s also used for personal calls.
Keep call logs or use your diary method for split.
Non-Relevant Courses
Property investing, crypto trading, or unrelated upskilling, not deductible.
Training must maintain or improve your current income-producing skill set.
Tax Tip for Sole Traders and Subbies
If you’re a subcontractor or sole trader:
You must declare all income, including cash jobs.
If your GST turnover exceeds $75,000, you must register for GST.
Use cloud software like Xero or MYOB to track expenses, invoices and vehicle use, it’ll save you time and stress.
Don’t Let the ATO Catch You Out
The ATO uses data-matching and benchmarking to find incorrect claims, especially on:
Tools and depreciation
Vehicle expenses
Mobile phone use
To stay audit-proof, keep:
Receipts (digital or paper)
Logbooks and call usage diaries
Training enrolments and certificates
Employer letters stating you must carry tools
Work With Accountants Who Get the Trades
At Dolman Bateman, we’ve helped hundreds of tradies from electricians and plumbers to builders and contractors, get their tax right. We know what the ATO allows and how to maximise your deductions.
Disclaimer:
The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.
