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Tradesperson — tax deductions you can claim

For licensed tradespeople such as electricians, plumbers, carpenters, and painters employed by a business. Tools, PPE, and vehicle costs where you carry bulky tools are the main claim areas.

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What you can claim

  • Tools and equipment

    Immediate deduction for tools $300 or less; depreciated over effective life above that.

    instant write-off ≤$300, otherwise depreciation
  • Protective clothing/footwear

    Steel-cap boots, hi-vis, and hard hats.

  • Sun protection

    Sunscreen, sunglasses, and hats for predominantly outdoor work.

  • Licence and ticket renewal fees

    White card, EWP ticket, and plumbing/electrical licence renewals.

  • Travel between job sites

    Travel between different job sites on the same day.

  • Car expenses for bulky tools

    Car expenses when carrying bulky tools that can't be securely stored at the workplace.

  • Work phone use

    Phone use for job coordination.

  • Tool insurance

    Insurance covering your own tools.

Commonly missed deductions

People in this occupation often forget to claim these — check they apply to you.

  • Small consumables — drill bits, blades, safety glasses, work gloves
  • Ute/van running costs when the vehicle is essentially a mobile workshop
  • Apprenticeship/TAFE course fees and textbooks
  • Annual tool sharpening/servicing
  • Portable tool storage/lockboxes
  • First aid certificate if required on-site

What you can't claim

  • Normal clothes worn under protective gear

  • Tools provided by (and remaining the property of) the employer

  • Fines for traffic/parking infringements even if incurred while working

  • Home-to-work travel with a standard toolbox that could reasonably be left on-site

Records the ATO expects

  • ReceiptReceipts for every tool/equipment purchase

  • LogbookVehicle logbook if claiming more than 5,000km or using the logbook method

  • DiaryDiary noting the bulky-tools justification

  • InvoiceLicence/ticket renewal invoices

General information only, not tax advice — content last reviewed 01/07/2026 against ATO guidance for FY2025-26. Whether a specific expense is deductible depends on your individual circumstances; confirm with a registered tax agent or the ATO before lodging.

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