The basic rule
You can generally claim a deduction for money you spend that is directly connected to earning your income, where you have a record, and where you were not reimbursed. If something is part work and part private (a phone, a ute, a laptop), you claim the work-related portion only. Below is what tradies most commonly claim. It is a checklist to discuss with your accountant, not a ruling on your situation.
Tools and equipment
| Item | How it is usually claimed |
|---|---|
| Tools and equipment under the instant asset write-off threshold | Often written off in the year of purchase (threshold and eligibility change, confirm the current rule) |
| Higher-value equipment | Depreciated over its effective life |
| Repairs and servicing of tools | Deductible in the year incurred |
| Tool insurance | Work-related portion deductible |
Vehicle and travel
Two methods for a car: cents per kilometre (a set rate up to a capped number of work kilometres, no logbook but you need to show how you worked out the kilometres) or the logbook method (a representative 12-week logbook sets your work-use percentage, which you apply to running costs and depreciation). For a ute or van over the car threshold, different rules can apply. Travel between jobs is generally deductible; travel from home to a regular workplace generally is not, with some exceptions for bulky-tools and no secure storage.
Clothing, licensing, training and the rest
- Protective clothing and gear: hi-vis, steel-caps, safety glasses, sunscreen and similar are deductible. Plain clothes are not.
- Licences and registrations needed for your trade (renewals, not the initial qualifying licence in some cases, confirm).
- Training that maintains or improves skills for your current trade.
- Phone and internet, work-related portion.
- Home office running costs for the admin side of the business, work-related portion.
- Union or association fees, and your accounting and bookkeeping fees.
The records you need
Keep receipts (digital is fine), a vehicle logbook if you use that method, and a clear split between work and private use. The simplest way to never lose a deduction is to run everything through a business account and capture receipts into Xero as you go, so nothing relies on memory at tax time. We set trade clients up so the deductions are captured through the year, then your registered tax agent claims them correctly.
Want the day-to-day capture sorted? See our trades bookkeeping page or book a free call.
General information only, current as at October 2026, not tax or financial advice. Confirm your specific obligations with your registered tax agent or the ATO.