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Running the Business

Tax Deductions Every Aussie Tradie Should Claim

Every deduction you miss is money handed to the ATO for no reason. Here is the checklist tradies forget — and how to keep the records that make each one stick.

6 min read·Updated July 2026

Most tradies leave money on the table at tax time — not through dodgy claims, but by forgetting legitimate ones or not having the receipt to back them up. Here is a plain-English checklist of what you can usually claim, and the record-keeping that turns "I think I bought that" into a solid deduction.

Quick note
This is general information, not tax advice. Deductions depend on your circumstances — confirm your claims with a registered tax agent.
The short answer
If it is a genuine work expense you paid for yourself and can prove with a record, it is generally deductible. For tradies that commonly means tools, vehicle and travel, phone and internet, workwear, licences, insurance, training and accounting fees. The three rules: work-related, paid by you, and documented.

The deductions tradies commonly miss

  • Tools & equipment — claimed in full under the write-off threshold, or depreciated if pricier.
  • Vehicle & travel — the work-use portion of fuel, servicing, rego, insurance and depreciation (logbook or cents-per-km).
  • Phone & internet — the work-use percentage of your bills.
  • Protective clothing & workwear — hi-vis, steel caps, sun protection, branded uniforms.
  • Licences & registrations — trade licences, white card, association or union fees.
  • Insurance — public liability, tool insurance, income protection.
  • Training — courses and tickets that relate to your current trade.
  • Accounting & software — your accountant's fees and the business tools you pay for.
  • Home office — a portion of costs if you do your quoting and admin from home.

The bit that trips everyone up: records

A deduction is only as good as the proof behind it. The ATO can ask you to substantiate any claim, so the difference between claiming confidently and claiming nervously is your records:

  • Keep every receipt and tax invoice — digitally, so they don't fade in the ute.
  • Log work-use apportioning — a vehicle logbook, a reasonable phone-use percentage.
  • Make sure you actually paid and weren't reimbursed for it.

Tradies who track expenses through the year claim more and stress less than the ones digging through a shoebox the night before their return is due.

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Frequently asked questions

What can tradies claim on tax in Australia?

Common deductions include tools and equipment, protective clothing and workwear, vehicle and travel for work, phone and internet (work-use portion), union or association fees, licences and registrations, insurance, training related to your trade, and accounting fees. The rule is it must be a genuine work expense, you must have paid for it yourself, and you must have a record.

Can I claim my tools on tax?

Yes. Tools and equipment used for work are deductible. Items under the instant asset write-off threshold can generally be claimed in full the year you buy them; more expensive gear is depreciated over time. Keep the receipts either way — no receipt, no claim.

Can I claim my ute or vehicle?

You can claim the work-related portion of running a vehicle — fuel, servicing, rego, insurance and depreciation — using either the cents-per-kilometre method or a logbook. A logbook usually gives a bigger, more accurate claim if you do serious work kilometres, but you have to keep it properly.

What records do I need to claim deductions?

You generally need a receipt or tax invoice for each expense, records of any work-use apportioning (like a vehicle logbook or phone-use estimate), and you need to have paid for it yourself and not been reimbursed. The ATO can ask you to substantiate claims, so keep everything — digitally is easiest.

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