Tradespeople in Australia — electricians, plumbers, carpenters, builders, mechanics, painters, and others — can claim substantial tax deductions. Tools and equipment are often the largest single category, but vehicle, clothing, licence fees, and union costs also add up. Whether you are an employee or sole trader, understanding what qualifies means keeping better records throughout the year.
Tools and Equipment
Work tools and equipment you purchase are deductible:
- Power tools (drills, saws, nail guns, angle grinders)
- Hand tools (spanners, screwdrivers, chisels, levels)
- Measuring and testing equipment (multimeters, laser levels, pipe locators)
- Toolboxes (purchased for work use)
- Replacement parts for tools
Under $300 (with primarily work use): Claim in full in the year of purchase. $300 or more: Depreciate over the effective life (typically 5–8 years for power tools).
You cannot claim tools purchased by your employer or reimbursed by your employer.
Vehicle Deductions
The vehicle is often the most valuable deduction available to a tradie. There are two methods:
Logbook Method (Recommended for High Work-Use Vehicles)
- Keep a logbook for a continuous 12-week period recording each trip (date, destination, km, purpose)
- Calculate the work-use percentage (e.g., 75%)
- Deduct that percentage of all running costs: fuel, registration, insurance, repairs, depreciation
- The logbook is valid for 5 years
Cents per Kilometre Method
- 88 cents per kilometre (FY2024–25)
- Maximum 5,000 km per year
- Suitable for lower work-use vehicles; simpler record-keeping
Note: Travel from home to your usual workplace is not deductible. Travel from home to a client’s site is deductible if there is no fixed usual workplace, or if you carry bulky tools that cannot be secured at work.
Protective Clothing and Uniforms
Deductible work clothing for tradespeople:
- Steel-capped boots required for the site
- Hi-vis vests and workwear required under workplace health and safety rules
- Hard hats (if personally purchased)
- Protective gloves
- Company-branded work shirts or uniforms with a visible company logo
General clothing — even if worn exclusively on site — is not deductible. The clothing must be occupationally distinctive (protective purpose or employer-branded).
Laundry: $1 per load for work clothing only, or $0.50 per load when washed with personal items. No receipt needed up to $150/year.
Trade Licences and Renewals
Licensing fees required to continue working in your trade are fully deductible:
- Electrical licence renewal (state-based)
- Plumbing licence renewal
- Builder’s licence fees
- Gas fitting licence
- Refrigerant handling licence (ARCtick)
- Explosive power tool licence
- White Card renewal (Construction Induction)
- Forklift licence renewal
Fees for obtaining an initial licence may not be deductible as they are part of acquiring a new qualification — seek advice.
Union and Association Fees
- CFMEU (Construction, Forestry, Maritime, Mining and Energy Union) — deductible
- ETU (Electrical Trades Union) — deductible
- PLUMBUS (plumbing union) or similar — deductible
- Any trade-specific employer or industry association membership where membership is necessary for employment
Self-Education and Training
Courses and short-form training directly related to your current trade are deductible:
- Safety and competency course fees (working at heights, confined space)
- Trade-specific technical courses (e.g., new wiring standards for electricians, new plumbing codes)
- First aid certificate renewal (if required by your employer or site)
Not deductible: study to obtain your initial trade qualification, or study for a completely different trade.
Home Office
Sole traders who work from home (invoicing, quoting, scheduling) can claim:
- 67c/hour fixed rate for home office hours
- Or actual cost method (proportion of home office running costs)
What Tradies Cannot Claim
- Normal commute home to site (unless special circumstances apply — see vehicle section)
- Meals eaten during the day (unless working away overnight)
- General fitness (gym membership)
- Tools that the employer provides
Frequently Asked Questions
Can I claim a ute used for work? Yes — using the logbook method or cents per km method. The key is establishing the work-use proportion. A ute used 80% for work (logbook-verified) allows 80% of all running costs to be claimed.
I’m an apprentice. What can I claim? Apprentices can claim the same work-related expenses as qualified tradies: tools (proportional to use), protective clothing, union fees, and any required training materials. Apprentices on the Job Trainer Apprentice Payment — any payments received are taxable income to be declared.
Can I claim tools I bought before starting my current job? Only if the tools are used in your current work. If you bought them specifically to start this role, the deduction may be limited to the decline in value at the time you commenced employment, not the original cost.
This article provides general tax information. For advice tailored to your situation, speak with a registered tax agent. Find one through the Tax Practitioners Board register.