Tax deductions for tradies
As a tradie you can generally claim the tools, protective gear, and work-related vehicle travel you pay for yourself — the things you buy to actually do the job.
Tradies rack up more claimable expenses than almost any occupation — but they’re also the easiest to lose track of when receipts live in a glovebox. Here are the categories that come up most often.
The three rules for any claim
- You paid for it yourself and weren’t reimbursed.
- It directly relates to earning your income.
- You have a record — a receipt, invoice or bank statement.
What you can usually claim
Tools and equipment
Hand tools, power tools and equipment you buy for work. Items under the low-cost threshold can often be claimed in full the year you buy them; more expensive tools are usually claimed over their effective life (depreciation).
Protective clothing and safety gear
Hi-vis, steel-cap boots, hard hats, gloves, sun protection for outdoor work — protective items specific to the job, plus the cost of laundering them.
Vehicle travel between sites
Travel between different job sites during the day, or carrying bulky tools you can’t leave on site, is generally claimable — usually via the logbook method or cents-per-kilometre. The regular commute from home to a single workplace is not.
Licences, tickets and union fees
Renewing a trade licence, white card, or machinery ticket, and union or industry association fees, are typically deductible. The initial cost of getting a licence to enter the trade usually isn’t.
General information, not personal tax advice. What you can claim depends on your circumstances — check with the ATO or a registered tax agent, and keep records for every claim.
Keep in mind
- Ordinary clothes (plain jeans and a t-shirt) even if you only wear them to work.
- Your normal commute from home to a fixed workplace.
- Tools or gear your employer paid for or reimbursed.
Take it further
Your income tax, Medicare levy and take-home pay on any salary.
AI2Fin for sole traders →Split business from personal automatically and never miss a deduction.
Depreciation (decline in value) →Claiming the cost of a big asset gradually over its life.
Instant asset write-off →Immediately deduct an eligible asset instead of depreciating it.
Logbook method (car expenses) →Claim your car’s real business-use share of running costs.
Tradies — common questions
Can I claim my ute?
You can claim the work-related running costs of a vehicle you use to travel between sites or carry bulky tools — using a logbook or the cents-per-kilometre method. Private use isn’t claimable, so the split matters. This is general information, not personal tax advice — what you can claim depends on your circumstances, so check with the ATO or a registered tax agent, and keep records to back up every claim.
Do I need a receipt for every tool?
Keep evidence for your claims. There are simplified record rules for smaller totals, but a receipt or bank record showing what you bought and when is the safest backup. This is general information, not personal tax advice — what you can claim depends on your circumstances, so check with the ATO or a registered tax agent, and keep records to back up every claim.
Can I claim tools I bought before I started the job?
Generally you claim tools bought to earn your current income. Getting the timing and purpose right matters, so it’s worth checking specifics with your tax agent. This is general information, not personal tax advice — what you can claim depends on your circumstances, so check with the ATO or a registered tax agent, and keep records to back up every claim.
Deductions for other occupations
See all occupations.
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