Tax Return and Deduction Checklist for Trades Professionals
Whether you’re a carpenter, plumber, painter, electrician, bricklayer, or tiler, your expertise lies in your trade – but your taxes deserve the same level of attention. Navigating tax returns doesn’t have to be stressful. With the right guidance, you can lodge your return accurately, claim eligible deductions, and maximise your refund.
This guide outlines the key tax deductions available to trades professionals and provides a clear checklist to help you stay organised during tax season.
Why Seek Professional Assistance?
Completing your tax return with a qualified tax consultant ensures:
All legitimate deductions specific to your trade are claimed
Your return is lodged accurately and on time
You avoid unnecessary errors or missed claims
Trades professionals often have complex expense patterns, from tools and equipment to travel and protective clothing. Expert advice helps you get the most out of your return while remaining compliant with ATO rules.
What You Need to Get Started
Before lodging your return, you’ll typically need:
Your income statement (previously called a payment summary or group certificate) from your employer, summarising salary, wages, allowances, and bonuses for the financial year.
Details of any work-related expenses you intend to claim.
You don’t need to provide a physical copy of your income statement—it’s usually lodged with the ATO electronically. Your tax consultant can access this information to help you calculate your deductions.
Key Points About Claiming Deductions
Two essential rules apply to all claims:
You must have personally paid the expense (not reimbursed by your employer).
You must have evidence to support the claim, such as receipts, invoices, or digital records.
Deductible Expenses for Trades Professionals
Tools and Equipment
Tradespeople rely on tools daily, making them one of the most significant deduction categories.
For business owners:
Eligible tools purchased and installed during 2024, 2025, and 2026 may qualify for the instant asset write-off if your business turnover is less than $10 million.
Items costing less than $20,000 can often be claimed immediately.
For employees:
Tools costing $300 or less can be deducted immediately.
Tools over $300 must be depreciated over their effective life.
Always claim only the portion used for work if you also use the tools personally.
Vehicles
You can claim expenses for vehicles used for work, such as cars, utes, or vans, provided:
You personally pay for the vehicle (not employer-provided)
You maintain a logbook or use an approved cents-per-kilometre method
Key points:
Passenger cars or utes under 1-tonne payload: you can claim your work-use percentage for all running costs (fuel, repairs, insurance, registration, washing).
Vehicles over 1-tonne payload or carrying 9+ passengers require detailed expense records and logbooks.
Simplified method: claim 88 cents per kilometre for up to 5,000 km (2024/25 year), covering all running costs.
Commuting from home to work is not deductible, unless transporting heavy tools required for the job.
Work-Related Clothing and Protective Gear
You can claim clothing or protective gear if it’s:
A mandatory uniform with an employer logo
Required for safety or protection, including heavy-duty workwear
Examples include:
Fire-resistant clothing
High-visibility vests
Steel-capped boots
Gloves, hard hats, safety glasses
Sun protection items (sunglasses, sunscreen) for outdoor work
Laundry and Dry-Cleaning:
Expenses for cleaning eligible work clothing can also be claimed.
For laundry under $150, simplified ATO rates apply: $1 per load for all work clothing, 50 cents per load if mixed with personal items.
Obsolete Materials and Bad Debts
Write off obsolete, damaged, or unusable materials before June 30 to claim a deduction.
Bad debts from clients who are unable or unwilling to pay can also be claimed if documented appropriately.
Other Common Deductions
Other deductible expenses may include:
Transport costs between multiple jobs or work locations (tolls, parking fees)
Licensing and renewal fees (not initial costs)
Union and professional association fees
Work-related phone and internet usage
Self-education costs related to your trade
First aid training if required for work
Accommodation and meals when traveling for work overnight
Home office or workshop running expenses (heating, cooling, repairs)
What You Cannot Claim
Common non-deductible expenses include:
Ordinary clothing (jeans, t-shirts, shorts) worn outside work
Driver’s license renewal
Entertainment or personal meals
Employer-provided tools or equipment
Fines or penalties (parking, speeding)
Maintaining accurate records is essential for claiming deductions and avoiding disputes with the ATO. Keep digital or physical copies of:
Receipts and invoices
Bank or credit card statements
Logbooks and diaries for vehicle or home office use
For small expenses under $10 (cumulatively under $200), a diary record is sufficient.
Mistakes on Your Tax Return
Mistakes can happen, but it’s important to act quickly. If you discover an error in your lodged tax return:
Contact a qualified tax consultant immediately
Correct unsubstantiated or incorrect claims to avoid penalties
Need Help Lodging Your Tax Return?
Filing your tax return accurately and claiming all eligible deductions doesn’t have to be stressful. Our experienced tax consultants can guide trades professionals through the process, ensuring your return is compliant, complete, and optimised.
Call +61451114862 to book an appointment.
