Tradies — electricians, plumbers, builders, carpenters, mechanics, tilers, painters, and other tradespeople — have access to a solid set of work-related deductions. Tools, vehicle expenses, protective clothing, phone, and union fees are among the most significant. Whether you are an employee tradie or self-employed, here is what you can typically claim on your Australian tax return.
Keep your receipts and your logbook. The ATO knows tradie deductions are high-volume and actively risk-profiles claims in this occupation group. Records are essential.
Tools and Equipment
Tools are among the most valuable deductions for tradies:
| Item cost | How it is claimed |
|---|---|
| Under $300 (primarily work use) | Claimed in full in the year of purchase |
| $300 or more | Depreciated over the asset’s effective life |
| Any amount (used mixed personal/work) | Only the work proportion is deductible |
Examples of deductible tools: power tools, hand tools, measuring equipment, testing equipment (for electricians), diagnostic tools (for mechanics), consumables used at work sites.
Storing tools: If you pay to store work tools (e.g., renting a lockup), the cost may be deductible.
Vehicle and Travel
For tradies who carry tools and equipment to work sites, the vehicle situation is more complex than the standard “commute is not deductible” rule:
| Travel type | Deductible? |
|---|---|
| From home to a regular work site (your usual work location) | Generally not deductible — this is private travel |
| From home to a client site when there is no fixed work location | Potentially deductible |
| Between two separate work sites on the same day | Deductible |
| Travel to purchase work-related supplies | Deductible |
If you carry tools that are bulky and cannot be left at the work site (e.g., you have no secure storage), there is an ATO concession: the home-to-work travel may be deductible. You need to substantiate that the equipment is bulky, necessary, and cannot be stored securely at the workplace.
Methods for claiming vehicle expenses:
- Cents per kilometre: 88c/km (FY2025–26), up to 5,000 km per year — simple, no logbook needed, but limited
- Logbook method: Requires a 12-week logbook showing work vs private use — allows a higher deduction for high-kilometre workers
Protective Clothing
Tradies are among the most clear-cut claimants for protective and occupation-specific clothing:
| Item | Deductible? |
|---|---|
| Steel-capped boots (required for work site) | Yes |
| Hi-vis vests and shirts | Yes |
| Hard hat | Yes |
| Safety glasses | Yes |
| Overalls and work pants (occupationally distinct) | Yes |
| Sun protection clothing, hats | Yes — when required outdoors for work |
| Ordinary clothing, even if worn to work | No |
Laundry of deductible work clothing: $1 per load (work clothing only), up to $150/year without receipts. Above $150, keep written evidence.
Phone and Internet
- Phone: Claim the work proportion of your monthly phone bill
- Identify work vs personal calls over a 4-week representative period
- Apply the work percentage to the full year’s bill
- Internet: Work proportion (relevant if you receive or send quotes, invoices, scheduling from home)
Union and Association Fees
- Relevant trade union (e.g., CFMEU, ETU, PLUMBING Union Australia) — fully deductible
- Master Builders Association or similar — if relevant to your work
- Any professional association required or directly related to your trade — deductible
Licences and Certificates
Trade licences, certificates, and mandatory ongoing training are deductible:
- Annual licence renewal fees (electrician licence, plumbing licence, builder’s licence)
- White Card (mandatory for construction site access)
- Working at Heights, Confined Space, First Aid certificates — if required by your employer or for your work
- Apprenticeship-related course fees that improve your skills in your current trade
Self-Education
Upgrading skills in your current trade (not to move into a new field) is deductible:
- Advanced courses in your trade
- Industry short courses related to your current work
- Textbooks or technical manuals for your trade
Home Office
If you work from home to manage administration (quoting, invoicing, correspondence):
- 67c/hour fixed rate for hours worked from home (diary required)
What Tradies Cannot Claim
- Normal commute to a fixed work site
- Food and drink during the workday (unless working away from home overnight)
- Gym membership or personal fitness
- Fines (e.g., traffic fines, on-site safety fines)
Frequently Asked Questions
Can I claim a new ute or work van? If the vehicle is used for work (carrying tools, travelling to job sites) and you have a logbook, you can claim the work proportion of running costs via the logbook method. For self-employed tradies with a vehicle used almost entirely for work, this is a significant deduction. Employee tradies must also use the logbook method for vehicles (the cents-per-km method is also available up to 5,000km).
Can an apprentice tradie claim deductions? Yes. Apprentices can claim the same categories — tools, protective clothing, licence fees, union fees. The amounts are typically smaller given lower income and tool kit size in the early years.
What if my employer provides some tools? Can I still claim for my own? Yes. If you purchase tools yourself that your employer does not provide, you can claim those. You cannot claim tools your employer provided.
How much can I claim for tools before the ATO scrutinises my return? There is no specific cap — claims must be genuine and substantiated. The ATO benchmarks tradie deductions and claims that are significantly higher than occupation averages may be reviewed. As long as your claims are real and you have receipts, you can claim what you are entitled to.
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.