Don't Pay More Tax Than You Need To
Many tradies overpay tax simply because they don't know what they can claim. Here are 15 legitimate deductions you might be missing.
Disclaimer: This is general info, not tax advice. Talk to your accountant about your specific situation.
Vehicle Deductions
1. Work Vehicle Running Costs
If you use your vehicle for work, you can claim:
- Fuel
- Registration
- Insurance
- Servicing and repairs
- Depreciation
Key: Keep a logbook for 12 weeks to establish your work-use percentage.
2. Ute Canopy and Fit-Out
Toolboxes, drawers, racks, and canopies are deductible as work equipment.
Tools and Equipment
3. Tools Under $300
Claim immediately in full for items under $300.
4. Tools Over $300
Depreciate over the item's effective life (power tools typically 5 years).
5. Tool Insurance
Premiums for insuring your tools are fully deductible.
6. Tool Repairs and Replacements
Repairs to existing tools are immediately deductible.
Clothing and Safety
7. Safety Gear
- Steel-cap boots
- Hard hats
- Safety glasses
- Hi-vis clothing
- Gloves
8. Work Uniforms
Branded uniforms with your business logo are deductible. Plain clothes (even if you only wear them to work) are NOT.
9. Laundry
You can claim $1 per load for washing work-specific clothing (without receipts up to $150).
Education and Development
10. Training and Courses
Courses related to your current work are deductible:
- License renewals
- Safety certifications
- Trade skill courses
- Business development training
11. Trade Publications and Resources
Books, magazines, online subscriptions related to your trade.
Business Operations
12. Phone and Internet
Claim the work-use percentage. If 60% of your phone use is for work, claim 60%.
13. Software Subscriptions
- ServiceM8 / Simpro
- Xero / MYOB
- Answering services
- Cloud storage
14. Home Office
If you do admin at home, you can claim:
- Portion of electricity
- Portion of internet
- Office furniture and equipment
15. Professional Services
- Accountant fees
- Bookkeeping
- Legal costs (business-related)
- Industry association memberships
Commonly Missed Deductions
- Travel between job sites: If you go from Job A to Job B (not home to work), that travel is deductible.
- Parking at job sites: Deductible if work-related.
- Sun protection: Sunscreen and sunglasses for outdoor work.
- First aid kit: Required for many sites.
What You CAN'T Claim
- Travel from home to your regular workplace
- Plain clothes (even if only worn to work)
- Meals (unless traveling overnight for work)
- Gym memberships (even if your work is physical)
- Fines and penalties
Record Keeping Tips
- Keep receipts for 5 years (digital is fine)
- Use an app like Dext to photograph receipts
- Maintain a logbook for vehicle use
- Separate business and personal bank accounts
The Bottom Line
Every dollar you can legitimately claim reduces your tax bill. Take 30 minutes with your accountant to review this list and make sure you're not leaving money on the table.