I’m a tradie. What tax deductions can I claim?
People who work in a trade such as builders, plumbers and electricians to name a few, often pay for work-related expenses out of their own pockets. And when you’re working long hours or busy meeting deadlines, it doesn’t leave you much time or energy to think about your taxes.
Unfortunately this means many tradespeople end up paying too much tax and miss out on hundreds (and in some cases thousands) of dollars worth of claimable expenses every year.
Do you get everything back you deserve from the ATO at tax time? Here are our common tips on tax deductions for tradies.
Common Tax Deductions for Tradies
You can get valuable tax deductions for tradies with work-related expenses, including:
- Workwear that has a “logo” and protective items like hi-vis, boots and safety glasses
- Tools and equipment which has been purchased, leased or repaired
- Laundry/cleaning of work-related clothes that have employer logos or text
- Sunscreen and sunglasses if you work outside
- Work-related tablet, computer and mobile phone expenses
- Home office expenses
- Training courses, licenses and certifications (if directly related to your current role)
- Deductible Car expenses including parking, tolls, running expenses, fuel, km driven etc.
- Travel and accommodation expenses when working away from home
- Union fees are tax deductible
Can I claim this item as a tax deduction?
You may be able to claim something as a tax deduction if you answer “yes” to ALL of the questions below:
- Is it directly related to your work or required for your work?
- Did you pay for it yourself?
- Do you have a receipt, invoice or bank statement as proof of purchase?
- You were not reimbursed for the cost by anyone or your employer?
Not sure? Talk to your tax agent about it and be honest with them. Their job is to help you with this! (Etax.com.au is a registered agent and we help thousands of tradies every year.)
Only claim real items – fake tax claims are now a serious risk.
The ATO can spot fake or “inflated” tax deductions from miles away. They are incredibly good at this and they’re getting better at it. Powerful new tools help to check up on taxpayers and they can check your “private” details – including bank account transactions. It’s important to claim real deductions only – items you paid for and that are directly related to your work.
If you are caught out claiming items you didn’t pay for, that your company paid for, or that you can’t prove with a receipt, the result can be painful: The ATO will demand pay-back and they might investigate your tax returns from previous years as well.
For most tradies, there are heaps of items you can claim, so there’s just no need to take risks and get in trouble. Plus, taxes run our amazing country, pay for schools and motorways and hospitals, so we should all pay our share.
What can tradies claim on tax without receipts?
The best way to boost your tax refund is to keep your tax receipts and notes about expenses. However, there are cases where you can claim a tax deduction without a receipt, but there are serious restrictions. Sometimes things like union fees, fuel/petrol and other items have alternative ways to keep good records to ensure you can still claim it on your tax return.
At tax time, the best thing to do is to keep all your receipts in one place. That means it will be easy to finish your tax return in July AND you’ll get to claim more tax deductions, because you won’t forget items that you paid for, and deserve to claim.
Download our = Tax Tips for Tradies
To help jog your memory and collect all the right documents and details for tax time, we’ve created a helpful tax tips and tax deductions for tradies.
