Are you are Tradie? -Your go to checklist for 2025 Tax Time!
Whether you’re a carpenter, plumber, electrician, bricklayer, painter, concreter, laborer or tiler. Getting expert guidance ensures you claim what you’re entitled to, avoid common mistakes, and maximise your deductions.
This guide outlines key deductions and records to help tradies prepare for tax time.
Key principles for claiming deductions:
To claim a work-related deduction:
You must have paid for the expense yourself (and not been reimbursed).
The expense must directly relate to earning your income.
You need a record to prove it (receipts, invoices or other documentation).
You can only claim the work-related portion of an expense — if something is used privately and for work, you’ll need to apportion the cost.
Common deductions tradies can claim:
-Tools and Equipment
If you buy tools and equipment needed for your work:
If you run your own business with turnover under $10 million, you may be eligible for the instant asset write-off for tools costing under $20,000, purchased and installed by 30 June 2025 (subject to legislative changes).
If you’re an employee:
Tools costing $300 or less: claim immediately.
Tools over $300: claim depreciation over their effective life.
For tool sets, the $300 threshold applies to the total set.
You can also claim depreciation or deductions for work-related computers, phones, printers and tablets — but only for the work-use portion.
-Vehicle Expenses
You can claim vehicle running costs for work-related travel if you use your own vehicle (not a work-provided vehicle).
Two main methods for cars and small utes (payload under 1 tonne):
Logbook method: Maintain a logbook for at least 12 weeks to establish the business-use percentage and claim that proportion of all running costs (fuel, insurance, rego, servicing, depreciation).
Cents per kilometre method: For up to 5,000 work kilometres per year, claim 88 cents per km (2024–25 rate), covering all costs — no additional deductions allowed.
If your vehicle is a ute or van with a payload over 1 tonne or carries 9+ passengers, you must use actual costs with a logbook (the cents per kilometre method doesn’t apply).
Important:
Travel between home and your regular workplace is generally not deductible — unless you transport bulky tools or equipment essential for your work, with no secure storage at work.
-Work-related Clothing
You can claim:
Protective clothing (e.g., high-vis, steel-capped boots, gumboots, gloves, safety glasses, fire-resistant clothing).
Branded compulsory uniforms.
Sun protection gear for outdoor work (sunscreen, hats, sunglasses).
Everyday clothing (e.g., jeans, plain shirts) isn’t deductible even if worn at work.
-Laundry and Cleaning
You can claim laundry costs for eligible work clothing:
$1 per load if the load only contains work-related clothing.
50 cents per load if mixed with other clothes.
Claims under $150 for laundry don’t require written evidence, but you must be able to show how we calculated your claim.
-Other deductions:
Parking fees and tolls for travel between work sites during the day.
Licences and certificates renewals (but not the initial application fee).
Union and association fees.
Work-related phone and internet expenses — only for business use.
Overtime meals if you receive a taxable overtime meal allowance.
Self-education directly related to your current trade (e.g., apprenticeship courses).
First aid training if you’re the designated first aid officer.
Home workshop costs — a portion of utilities and repairs where you maintain a dedicated work space.
Travel expenses if you stay overnight for work purposes (meals, accommodation, fares).
What can’t you claim?
You can’t claim deductions for:
Normal everyday clothing, even if you only wear it for work.
Regular driver’s licence renewals.
Fines (parking, speeding etc.).
Meals and snacks during regular workdays (without a specific allowance).
Tools provided by your employer.
Entertainment (e.g., social events, business lunches, sports tickets).
Your dog as security
Fridge in your car to keep your lunch cold
Records you need to keep:
Good records are essential — receipts, invoices, statements or digital copies showing:
Supplier name
Amount
Description of goods/services
Date paid
Date of document
You don’t need receipts for expenses under $10 (unless they add up to more than $200), but you must record them in a diary.
Need tailored advice?
Tax rules for tradies can get complex and you all spend a lot to generate your income. We help tradies like you get it right and claim everything you’re entitled to.