Tax deductions that tradespeople can claim
There are certain things only tradies can claim as a deduction at tax time. Here's a list of what you're eligible for.
There are certain things the Australian Tax Office (ATO) allows tradespeople to claim as a tax deduction, that employees in other industries generally can't claim. This is because working as a tradesperson, or 'tradie', comes with some different work-related expenses than office workers.
If you're a tradesperson, check this list of tax deductions to make sure you're claiming everything that you're entitled to claim at tax time.
Top 8 tax deductions for tradies
1. Your car or truck
If you rely on your vehicle to move to and from different workplaces, different offices or different work sites throughout the day you can claim this as a tax deduction. Most tradespeople move around from job to job, unlike office-based workers who are generally based in the same location every day. To claim your vehicle expenses, you'll need to keep a log of your work-related trips for at least three months.
2. Work clothing
There are a few specific pieces of clothing that tradespeople are eligible to claim as a tax deduction. These are things that you're required to wear for work, and are generally related to health and safety. For example, protective clothing like vests or jumpsuits as well as protective footwear like steel-cap boots. However you can only claim these as a tax deduction if you've paid for them out of your own pocket, and not if your employer has already paid for them on your behalf.
3. Protective accessories and gear
As well as clothing, you can also claim things like sunglasses, hats and sunscreen if you're required to work outside. You can also claim protective eye wear like goggles.
4. Tools and equipment
Tradies are often required to buy their own tools and equipment to take with them from job to job. If this is the case for you, and you haven't been given the tools from your employer, you're able to claim these as a deduction at tax time. This is because you're required to buy and use these to get your job done. Plus, you can even claim the cost of getting your tools repaired or serviced.
5. Courses related to your work
You might need to do a safety course to remain compliant in your role, or perhaps you've completed a specialist ticket or training. These things are able to be claimed as a tax dedication, as they're required for your job or they're considered to be self-education expenses.
6. Your mobile phone and data expenses
It's common for tradespeople to use their personal phone throughout the day for work-related calls and emails. You can claim a percentage of your phone and data costs, depeding on how much you use the phone for work and how much you use it for your own personal use. For example, if you use your phone for personal use 50% of the time, you can only claim 50% of the cost as a tax dedication.
7. Union fees
A lot of tradespeople are part of an industry union. If you're a member of a union, make sure you claim the annual membership fees as a tax deduction.
8. Tax-related expenses
This one is very easily forgotten at tax time. If you pay a tax agent to help you manage your tax and lodge your tax return, you can claim this cost as a tax deduction. This even includes the cost of travelling to and from the tax agents office.
- Individuals starting from $79*
- Sole trader starting from $150*
- Ride sharing tax returns start from $110*
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DISCLAIMER: Many of the comments in this article are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information applicability to their own particular circumstances.
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