Tradies are some of the most over-taxed people we meet — not because the rates are higher, but because deductions get missed. Here's a practical rundown of what you can claim, and the mistakes to avoid.
The golden rule
You can claim an expense if it's directly related to earning your income, you paid for it yourself and weren't reimbursed, and you have a record to prove it. Keep receipts — a photo on your phone is fine — and if something is part work and part private, you only claim the work-related portion.
Tools and equipment
Tools and equipment you buy for work are claimable. Lower-cost items can generally be claimed outright in the year you buy them; more expensive gear is typically depreciated over time. Repairs, insurance and interest on finance for your tools can also count.
Your ute and vehicle
Travel between job sites, to pick up materials, or carrying bulky tools you can't leave on site is usually claimable. The trip from home to a regular workplace generally isn't. Keep a logbook or records — the method that's best depends on how you use the vehicle, and it's worth getting advice to maximise it correctly.
Work wear and protective gear
Hi-vis, steel-caps, hard hats, gloves and other protective clothing are claimable, as is laundering them. Plain everyday clothes aren't, even if you only wear them to work.
Phone, internet and admin
The work-related portion of your phone and internet, bank fees on a business account, and software subscriptions all add up. So does the cost of your accountant.
Training and licences
Courses and tickets that maintain or improve the skills you use in your current trade are generally deductible — renewals of white cards, licences and the like included.
The mistakes that cost tradies
- Not keeping receipts — no record, no claim.
- Claiming 100% of a phone or vehicle that's also used privately.
- Leaving BAS to the last minute and guessing the numbers.
- Staying a sole trader long after a company or trust would save tax and protect assets.
Get it right and keep more
We specialise in accounting for tradies — BAS, deductions, bookkeeping and the right structure as you grow. Book a free tradie tax check and we'll make sure you're claiming everything you should.
This article is general information, not personal tax advice. Your situation is unique — talk to us before acting.
Questions about your own situation?
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