Tax Return & Deductions Checklist for Tradies

Whether you're a carpenter, bricklayer, plumber, painter, plasterer, or tiler, you're a pro at your trade and you know the value of getting the right expert for the job. When it comes to your taxes, the same logic applies.

What to Keep in Mind When Claiming Deductions

As you know, you're entitled to claim tax deductions for expenses you’ve incurred while earning your income. But before you start adding up your claims, there are two golden rules you need to follow:

1. You must have paid for it yourself
   The expense must have come out of your own pocket and not been reimbursed by your employer.
2. You need to keep records
   To support your claim, you must have proof of the expense—such as a receipt, invoice, or logbook. No documentation = no deduction.

Bonus Tip: Keep digital copies of your receipts or use an expense tracking app to stay organised throughout the year. It'll save you time and stress at tax time!

What Deductions Can I Claim as a Tradie?

As a tradie, you have access to a wide range of tax deductions for expenses related to your work, including:

Tools and Equipment

You probably rely on a variety of tools every day. The key rule is: if you bought them and they’re essential for your job or business, you can usually claim them as a deduction.

• If you’re self-employed or run your own business (with a turnover under $10 million):
  You may qualify for an immediate deduction for tools purchased and installed during the 2024, 2025, and (pending legislation) 2026 financial years—provided each tool costs less than $20,000.
• If you’re an employee:
  The rules are a bit stricter. Tools costing $300 or less can be deducted immediately. But if a tool costs more than $300, you’ll need to depreciate the cost over its useful life (which could be several years).
• Tool sets:
  You cannot claim each tool separately if the total set costs more than $300. Instead, you’ll have to depreciate the full cost over time unless the whole set costs $300 or less.

Office Equipment

• The same rules apply to office equipment like computers, phones, printers, tablets, and mobile phones.

Work vs Personal Use

• Remember to only claim the portion of the cost related to work or business use. If you use the tools or equipment for personal reasons too, you must apportion the deduction accordingly.

Tip: Keep detailed records of your purchases and usage to back up your claims. This will help you avoid any issues if the ATO requests evidence.

Vehicle Deductions for Tradies

You can claim expenses for running a vehicle used for work or business—like a car, van, or ute—as long as you personally pay for it (work-provided vehicles aren’t deductible).

Who Can Claim What?

• For passenger cars or utes with a payload under 1 tonne (employees and business owners):
  You can claim the work-related portion of all vehicle expenses (repairs, fuel, registration, insurance, washing, etc.).
  • Keep a logbook to track your work vs personal use.
  • You can also claim depreciation but note the car limit of $69,674 applies for 2025.
  • If your vehicle costs under $20,000 and you’re a small business, you might be eligible for an immediate write-off on your business portion.
• If you travel less than 5,000 km for work/business annually and have a passenger car or qualifying ute, you can use the simplified method:
  Claim 88 cents per kilometre for each business km (max 5,000 km). This covers all running costs, but you cannot claim individual expenses separately.
• For utes over 1 tonne payload or vehicles carrying 9+ passengers, you cannot use the simplified rate. You must keep receipts and a logbook to claim actual expenses. The depreciation limit does not apply.

Work-Related Clothing Deductions

If your job requires a mandatory uniform or protective gear to keep you safe or protect your everyday clothes, you’re likely eligible to claim deductions on both the purchase and cleaning costs.

Common Claimable Items for Tradies Include:

• Fire-resistant clothing
• High-visibility vests
• Steel-capped boots
• Gloves
• Safety glasses
• Hard hats
• Overalls
• Non-slip safety shoes
• Heavy-duty, rip-proof shirts and trousers (often with reflective strips)
• Compulsory work uniforms with your employer’s logo
• Sun protection gear like sunglasses and sunscreen for outdoor work

Note: These items must be designed to protect you from injury or damage, withstand tough working conditions, or offer UV protection—standard workwear like regular cotton drill pants usually doesn’t qualify.

Laundry & Dry-Cleaning Deductions

You can claim the cost of washing, drying, ironing, or dry-cleaning your eligible work clothes.

• If your total laundry expenses are $150 or less, you don’t need receipts!
• The ATO lets you use these flat rates to calculate your claim:
  • $1 per load if the load contains only work-related clothing
  • 50 cents per load if the load includes other laundry items

Tip: Keep a log of how many loads you do for work clothes to easily calculate your deduction.

Obsolete Materials & Bad Debts

If you’re running a business and have obsolete, damaged, or unusable materials sitting on-site at the end of the financial year, it’s smart to write off their cost before June 30. This lets you claim a tax deduction and tidy up your stock records.

Unpaid Invoices? Claim Bad Debts

• If you have clients who can’t or won’t pay, despite all reasonable efforts, you may be able to write off the debt as a tax deduction—but only if it’s done by June 30.
• Be sure to formally document the write-off (e.g. via a Board Minute or internal record) to validate your claim.

Tip: These write-offs help you keep your records clean and can reduce your taxable income—so don’t overlook them at year-end.

Other Possible Tax Deductions for Tradies

In addition to tools, vehicles, and work clothing, there are several other work-related expenses you may be able to claim, depending on your situation:

Travel & Transport

• Parking fees and tolls when driving between job sites.
• Award transport payments for deductible work-related travel.
• Overnight travel expenses, including meals and accommodation, if required to stay away from home for work.
• Overtime meals, if you receive a meal allowance under an award or enterprise agreement and it's included in your taxable income.

Work Clothing & Safety Gear

• Cost of buying, repairing, or cleaning:
  • Company-branded clothing (e.g. shirts, shorts with logos).
  • Protective gear such as hard hats, gloves, safety glasses, goggles, helmets, breathing masks.
  • Sun protection items like sunglasses, anti-glare glasses, sunhats, and sunscreen.

Tools & Equipment

• Insurance on personal tools or equipment (claim only the work-related portion).
• Repairs or maintenance of work-related tools and equipment.

Education & Memberships

• Fees for courses, training, or seminars directly related to your current job (e.g. apprenticeships).
• Union fees or professional association memberships.
• Renewal fees for licences, regulatory permits, certificates, or industry 'cards' (initial costs are not deductible).

Phone, Internet & Home Office

• Work-related use of your personal phone and internet (only the business-use portion).
• Home office or workshop expenses, including heating, cooling, and repairs to work-related equipment.

First Aid

• Cost of a first aid training course, if you're the designated first aid person at work.

What You Can’t Claim

Not all work-related expenses are tax-deductible. Here are some common items you can’t claim:

• Everyday clothing – such as jeans, shorts, plain t-shirts, or runners—even if you wear them exclusively at work.
• Driver’s licence renewal fees – even if a licence is required for your job.
• Entertainment – like business lunches, sporting events, or concerts, even if business is discussed.
• Fines – for speeding, parking, or other infringements, even if they occur during work hours.
• Employer-provided tools or equipment – you can’t claim for anything supplied to you.
• Regular meals or snacks during a normal workday, even if you receive an allowance (unless it's for overtime under a formal agreement).

What Records Do You Need to Keep?

Good records are key to maximising your tax refund. If you want to claim deductions, you’ll need to stay organised and keep accurate records throughout the year.

The good news? You don’t need paper receipts—digital copies are perfectly acceptable, as long as they’re clear and readable.

Your receipt (physical or digital) should show:

• The supplier’s name
• The amount spent
• What the goods or services were
• The date of purchase
• The date the receipt/document was issued

For Small Expenses

• You don’t need a receipt for purchases under $10, if the total of these doesn't exceed $200.
• However, you must record these in a diary or logbook with the same details listed above.