‍

Tax Deductions for Tradies in Australia: The 2024 Guide to Maximising Your Refund

👉 Trinity Accounting Practice
✅ Accounting Firm in Beverly Hills
☎️ 02 9543 6804
📍 159 Stoney Creek Road Beverly Hills NSW 2209
🌐 www.trinitygroup.com.au
📅 Weekend & after-hours appointments available!
📅 Booking Link: https://calendly.com/ramy-hanna

Introduction: Aussie Tradies—Don’t Let the ATO Keep What’s Yours

If you're a tradie—builder, plumber, electrician, painter, concreter, or any hands-on professional—chances are you're spending your own money on tools, gear, and transport. The good news? Many of those costs can be claimed at tax time.

But you need to know what’s deductible, what’s not, and how to track it all. This guide is built for you: the hard-working tradie who wants to stop overpaying tax and start keeping more of your cash.

1. Tools and Equipment – Your #1 Tax Asset

Tradies spend thousands on tools every year. Luckily, most of it is deductible.

You Can Claim:

• Hand tools (hammers, screwdrivers, tape measures, etc.)
• Power tools (drills, saws, grinders, nail guns)
• Safety and testing equipment
• Toolboxes and storage
• Depreciation for tools over $300
• Repairs and maintenance costs

📌 For larger tools (over $300), you’ll claim depreciation across their lifespan.

2. Work Vehicle Expenses

Got a ute, van, or even a truck for work? You can claim a huge portion of your vehicle costs.

Two Claim Methods:

• Cents per kilometre (up to 5,000 km/year)
• Logbook method (best for full-time tradies)

Deductible Costs via Logbook Method:

• Fuel
• Repairs and maintenance
• Registration and insurance
• Loan interest
• Depreciation
• Car wash and detailing

🛠️ Keep a logbook for 12 weeks to determine your business-use percentage.

3. Protective Gear & Uniforms

If you wear safety clothing or specific branded gear, you can usually claim the cost.

What’s Deductible:

• Steel-cap boots
• Hi-vis vests and jackets
• Gloves, helmets, and goggles
• Branded uniforms
• Sunscreen and sun protection (if working outdoors)
• Laundry for workwear

🚫 You can’t claim standard clothing like jeans, even if worn to work.

4. Licences, Registrations & Insurances

Stay legal and reduce tax? Absolutely.

Claimable Costs:

• Trade licences and renewal fees
• White Card, Working at Heights, EWP licences
• Business registrations (for sole traders)
• Public liability and tool insurance
• Income protection premiums (if not through super)

5. Work-Related Travel and Accommodation

If you work across multiple sites or travel for jobs, you can claim it.

Examples of Deductible Travel:

• Driving between job sites
• Visiting suppliers or clients
• Attending training courses
• Remote or interstate work requiring overnight stays

🚗 You can claim:

• Fuel
• Parking and tolls
• Airfares and accommodation
• Travel meals (only when staying overnight)

6. Mobile Phone and Internet

If you’re using your personal phone or internet for quoting, communication, or job tracking, you can claim a portion.

You May Claim:

• Monthly phone plan (work-related percentage)
• Data usage
• Work-related app subscriptions (e.g., job scheduling tools)
• Internet (if doing admin from home)

📲 Keep a 4-week usage log to determine your claim.

7. Education, Licences & Courses

Keeping your skills sharp? Great news—it could be deductible.

Deductible Education:

• Skills upgrades related to your current trade
• Safety training
• Business management courses (for sole traders)
• Course materials and stationery
• Travel for training

🚫 Courses that help you change careers aren’t claimable.

8. Home Office Expenses for Admin Work

Do you quote jobs, issue invoices, or order materials from home?

Fixed Rate Method:

• Claim 67c per hour for home admin tasks

Actual Cost Method:

• Portion of internet, electricity, equipment depreciation

🛠️ Office equipment like printers, chairs, and laptops can also be claimed or depreciated.

9. Business Expenses (For Sole Traders and Contractors)

If you run your own business or operate as an ABN contractor, you can deduct a wider range of expenses.

Business-Related Deductions:

• Accounting and bookkeeping fees
• Advertising and website hosting
• Job management software
• Tools and inventory
• Bank fees on business accounts
• Office rent or coworking space

💼 Speak to us about GST and BAS obligations if you're registered.

10. What Tradies Can’t Claim

Avoid costly ATO mistakes.

🚫 Regular jeans or shirts, even if only worn at work
🚫 Lunch or snacks unless you're traveling overnight
🚫 Commute from home to your main job site
🚫 Gym memberships (unless required for safety training)
🚫 Fines or penalties (e.g., parking tickets)

11. Case Study – Jake the Electrician

Jake works as a subcontractor across Greater Sydney. He bought tools, used his ute for work, and paid for his own PPE and phone.

With our help, Jake claimed:✅ $3,100 in tools
✅ 8,000 km of car travel
✅ Safety gear and branded uniforms
✅ Phone and data
✅ Income protection and licence renewals

💰 Jake's refund was $5,300 higher than the previous year.

12. Record-Keeping Tips for Tradies

🧾 Keep digital or physical copies of every receipt
🚗 Log car use and mileage with a logbook or app
📱 Save phone/internet bills
🪪 Keep insurance and licence certificates
🧰 Store tax invoices for tools and materials
🧮 Use software like Xero (we can help you set it up)

You must keep records for five years to meet ATO audit rules.

13. Why Work with Trinity Accounting?

We help tradies across NSW and Australia:

✅ Claim every allowable deduction
✅ Maximise your tax refund
✅ Set up ABNs, GST, and BAS
✅ Prepare sole trader and partnership tax returns
✅ Track income and expenses with easy software
✅ Lodge your return on time—every time

We know your industry. We speak your language. And we get results.

Book Your Tradie Tax Appointment Today

👉 Trinity Accounting Practice
✅ Accounting Firm in Beverly Hills
☎️ 02 9543 6804
📍 159 Stoney Creek Road Beverly Hills NSW 2209
🌐 www.trinitygroup.com.au
📅 Booking Link: https://calendly.com/ramy-hanna

‍

#TradieTaxTips #AussieTradies #TaxHelpForTradies #TrinityAccounting #ToolsAndTax #ConstructionFinance #BlueCollarTax #XeroAdvisor #NSWBusinessSupport

‍