Tax Deduction lists for Tradies in Australia
8/20/20252 min read
. Tools & Equipment
Tradies rely heavily on tools, and the ATO allows deductions for:
Power tools
Hand tools
Toolboxes
Safety equipment
Machinery
Repairs and maintenance
If the item costs under $300, you can usually claim an instant deduction. If it’s over $300, it’s depreciated over its effective life.
2. Vehicle Expenses
Your work vehicle is one of your biggest tax deductions. You may be able to claim:
Fuel
Repairs and servicing
Insurance
Registration
Tyres
Depreciation
Car loan interest (business portion)
You can use either:
Logbook method (best for tradies — usually gives a bigger deduction), or
Cents per kilometre method (simple but limited)
If you carry tools, travel between job sites, or pick up materials, these kilometres are deductible.
3. Work Clothing & Protective Gear
You can claim:
Hi‑vis clothing
Steel‑cap boots
Gloves
Hard hats
Protective eyewear
Fire‑resistant clothing
You cannot claim everyday clothing, even if you wear it for work.
4. Training, Licences & Certifications
If it helps you maintain or improve your current trade skills, it’s deductible:
Trade licences
White card
Safety courses
Professional development
Industry training
You can also claim travel costs to attend training.
5. Phone & Internet
Tradies rely on their phone for:
Client calls
Quotes
Job scheduling
Supplier communication
You can claim the business-use percentage of:
Mobile phone plan
Internet
Work-related apps
Keep a short usage diary for accuracy.
6. Work‑Related Travel
If you travel for work (not home to job), you can claim:
Accommodation
Meals (if overnight)
Parking
Tolls
Work‑related flights
Travel between multiple job sites is deductible.
7. Materials & Supplies
Any materials you buy for jobs are deductible:
Timber
Paint
Plumbing supplies
Electrical components
Hardware
Consumables (glue, nails, screws, sandpaper)
These are everyday business expenses and fully deductible.
8. Subcontractor Costs
If you hire subcontractors, you can claim:
Labour costs
Contract payments
GST paid (if applicable)
Make sure you keep proper invoices and ABN details.
9. Home Office (If You Do Admin at Home)
If you manage quotes, invoices, or bookkeeping from home, you may be able to claim:
Electricity
Internet
Phone
Office equipment
Computer depreciation
The ATO’s fixed rate method is commonly used for simplicity.
10. Accounting & Bookkeeping Fees
Any fees paid to your accountant or bookkeeper are fully deductible:
BAS lodgement
Tax returns
Advisory services
Payroll setup
Software subscriptions (Xero, MYOB, QuickBooks)
These help keep your business compliant and running smoothly.
Bonus: Instant Asset Write‑Off (When Available)
Depending on current ATO rules, tradies may be able to claim immediate deductions for eligible assets. This can apply to:
Vehicles
Trailers
Large tools
Machinery
Check current thresholds each financial year.