Tradies can claim a wide range of work expenses to cut their tax, including tools and equipment, work vehicles, protective gear, travel between job sites, and licences. The rule is simple: if you paid for it to earn your income and you have a record, you can generally claim it. Here are the deductions tradies most often miss or get wrong.
Tools, equipment and the instant asset write-off
Tools and equipment are deductible. Smaller items can be claimed straight away, and larger purchases can often be written off immediately under the instant asset write-off (a $20,000 per-asset threshold for 2025-26, with a permanent $20,000 announced from 1 July 2026 but not yet law). Assets above the threshold are claimed over time through the small business pool. Repairs and insurance on your tools count too.
Vehicles and travel between sites
Your work vehicle is often a big deduction. You can claim 91 cents per kilometre for 2026-27 up to 5,000 km, or use the logbook method for higher business use. Importantly, travel between different job sites during the day is deductible, even though your normal trip from home to your first regular workplace is not. For a genuine ute or van carrying tools, the actual cost method may apply.
Work gear, licences and other claims
Other common tradie deductions include:
- Protective clothing and safety gear (boots, hi-vis, hard hats, sunscreen and sunglasses for outdoor work).
- Licences, tickets, registrations and union or association fees relevant to your trade.
- Phone and internet (work-related portion), and tools of trade insurance.
Keep receipts and a simple record of business use, because mixed-use items (like a phone or a ute used privately too) can only be claimed for the work portion.
How MS Financial Services can help
We work with construction and trades businesses to claim every deduction and keep the books tidy. See our Tax & Compliance service or get in touch.
Frequently Asked Questions
What can tradies claim on tax?
Tools and equipment, work vehicles, protective clothing and safety gear, licences and tickets, union fees, phone and internet (work portion), and travel between job sites.
Can I claim my ute?
Yes. Use 91 cents per kilometre (2026-27) up to 5,000 km, or the logbook method for higher use. A genuine ute or van carrying tools may use the actual cost method.
Can I write off my tools immediately?
Often yes, under the instant asset write-off ($20,000 per asset for 2025-26). More expensive assets are claimed over time through the small business pool.
Can I claim travel between job sites?
Yes. Travel between different work sites during the day is deductible. Your normal trip from home to your first regular workplace is not.
Do I need receipts for everything?
Keep receipts and a record of business use. Mixed-use items like a phone or ute can only be claimed for the work-related portion.