Tax Deductions Aussie Tradies Forget to Claim

Vehicle and travel expenses

Your vehicle is likely your single biggest deduction — but only if you record it properly. You can use the logbook method (claim the business-use percentage of all vehicle costs) or the cents-per-kilometre method (capped at 5,000 km). For most tradies who drive extensively, the logbook method yields a significantly larger deduction. Beyond the vehicle itself, don't forget tolls, parking at job sites, and overnight accommodation if you travel for work.

• •Fuel and oil
• •Registration and insurance
• •Servicing, repairs, and tyres
• •Loan interest or lease payments
• •Depreciation of the vehicle
• •Tolls and parking at job sites
• •Overnight accommodation and meals when travelling for work

Tools, equipment, and PPE

Tools costing $300 or less can be claimed as an immediate deduction. Tools over $300 are depreciated over their effective life. Personal protective equipment (PPE) that you buy yourself is fully deductible — including steel-cap boots, hi-vis clothing, hard hats, safety glasses, gloves, and sunscreen if your work requires it.

• •Hand and power tools under $300 — immediate deduction
• •Tools over $300 — depreciated over their effective life
• •Steel-cap boots, hi-vis shirts, hard hats, safety glasses
• •Sunscreen and sun-protective clothing if you work outdoors
• •Tool insurance and extended warranties

Phone, internet, and home office

If you use your personal phone for work calls, texts, and data, you can claim the work-related percentage. The ATO accepts a reasonable estimate, but keeping a 4-week diary of usage is the safest method. If you do admin from home — quoting, invoicing, scheduling — you may also be able to claim a portion of your home office costs, including electricity, internet, and office furniture. The ATO's fixed-rate method allows 67 cents per hour worked from home.

Training, licences, and professional fees

Ongoing education related to your current trade is deductible. This includes short courses, ticket renewals, licence fees, and industry seminars.

• •Trade licence renewal fees (e.g. plumbing, electrical, pest control)
• •Short courses and upskilling related to your current work
• •First aid and CPR certification
• •Union and association membership fees
• •Accounting fees for preparing your tax return
• •Income protection and sickness/accident insurance premiums

Record-keeping tips to stay audit-proof

The ATO doesn't take your word for it — you need records. The simplest habit is to photograph every receipt the day you get it and store it digitally. Paper receipts fade and get lost. For vehicle claims, keep a logbook app running so every trip is recorded automatically. For phone and internet, download your monthly bills and highlight the work-related portion. And keep everything for at least five years — that's how far back the ATO can audit.

• •Photograph receipts immediately — paper fades within months
• •Use a logbook app for vehicle claims instead of guessing at year-end
• •Keep a 4-week phone diary to establish your work-use percentage
• •Store all records digitally in a searchable format
• •Retain records for a minimum of 5 years