The Tradie Tax Checklist, What You Can Claim, What You Can't, and What Most Miss

The ATO paid close attention to tradie tax claims in 2025, and 2026 is no different. With construction and trades forming the backbone of over 1.29 million Australian workers, work-related deductions in this sector are a known focus area. The good news: the rules are clear, and with the right records most tradies can significantly reduce their tax bill.

Tools & equipment

Items under $300 can be claimed as an immediate deduction. Items over $300 are depreciated over their effective life. The $20,000 instant asset write-off applies to eligible assets first used before 30 June 2026, so a power tool, compressor or work equipment bought before EOFY may be fully deductible this year. Keep the receipt and record the work-related purpose.

Vehicle & travel

You can claim vehicle expenses between job sites and travel to an alternative workplace such as a client's premises. The trip from home to your first job is generally NOT claimable, one of the most common mistakes. Keep a logbook if you use your vehicle for both work and personal use; the work-use percentage is what you can claim.

Protective clothing & safety gear

Gloves, safety boots, goggles, respirators, masks and high-vis are all claimable. Regular clothing, even if you wear it to work, is not, unless it carries a logo or is protective in nature. Steel-capped boots, yes. Work shorts from Kmart, no.

• Licences, registrations and union fees directly related to your work
• Work-related insurance and income protection
• Home office expenses for the admin side of the business
• Tools of trade and equipment repairs

The tradies who claim the most aren't the ones who spend the most, they're the ones who keep the best records. Get your paperwork in order before June 30 and let it work for you.