Who This Guide Is For
This guide covers tax deductions for electricians, plumbers, carpenters, builders, painters, tilers, concreter, welders, mechanics, HVAC technicians, and other licensed tradespeople in Australia for FY2025–26.
Tradies often have the highest deduction potential of any occupation — vehicles, tools, protective equipment, and licences add up quickly.
What Tradies Can Claim
1. Tools and Equipment
This is usually the biggest deduction for tradies.
Instant asset write-off (under $300):
- Claim the full cost in the year of purchase for any tool costing less than $300
- Screwdrivers, drill bits, tape measures, utility knives, consumables
Depreciation (over $300):
- Power tools (drill, grinder, circular saw): Depreciated over effective life (~5 years)
- Ladders, scaffolding: ~7 years
- Test and measurement equipment: ~5 years
Items often missed:
- Tool belt and pouches
- Protective cases for equipment
- Torch and batteries (work-use portion)
Note: If your employer provides the tools and you buy duplicates for convenience, those personal duplicates are NOT deductible.
2. Protective Equipment and Clothing
Fully deductible — these are clearly occupation-specific:
- High-visibility vests and shirts (required for most worksites)
- Steel-capped boots — footwear required for safety
- Hard hat / safety helmet
- Safety glasses and goggles
- Hearing protection (earplugs, earmuffs)
- Gloves (leather work gloves, cut-resistant gloves)
- Knee pads (for tilers, plumbers, floor installers)
- Respiratory protection / P2 masks
- Laundering of work clothing: up to $150/year without receipts
Plain work shorts and t-shirts are generally NOT deductible unless they display a company logo or are protective garments.
3. Work Vehicle
For tradies, the vehicle is often the single biggest deduction.
Cents per kilometre method (up to 5,000km/year):
- 88¢ per kilometre in FY2025–26
- Maximum deduction: 5,000 × $0.88 = $4,400
- No logbook required — but you need to be able to explain your work trips
Logbook method (for higher deductions):
- Keep a logbook for 12 continuous weeks showing all trips
- Work-related percentage applies to ALL vehicle costs: fuel, insurance, rego, servicing, depreciation
- Recommended if your vehicle is >60% work-related
You can claim: Driving to different job sites, picking up materials, travelling between jobs on the same day.
⚠️ You CANNOT claim driving from home to your first job site each day (unless you carry bulky tools that cannot be left at work and have no secure storage available).
Bulky tools exception: Electricians carrying a van full of conduit, plumbers with pipe equipment — if you genuinely have no secure storage at the job site, you CAN claim home-to-site travel.
4. Licences, Registrations, and Certifications
All deductible:
- Electrical licence renewal (state-based)
- Plumber's licence renewal
- Builder's licence / owner-builder registration
- White Card (CPCCWHS1001) renewal (Occupational Health and Safety)
- First Aid certification renewal
- Working at Heights certification
- Confined Space Entry
- Forklift, EWP, or heavy machinery licences (if already holding the licence and renewing)
Initial licence fees to enter the trade are NOT deductible. Only renewal fees for existing licences qualify.
5. Union Dues and Professional Memberships
- CFMEU (Construction, Forestry, Maritime, Mining and Energy Union)
- ETU (Electrical Trades Union)
- AWU (Australian Workers' Union)
- Master Electricians Australia, NECA, HIA, or MBA memberships
All 100% deductible.
6. Phone
Tradies use their phones constantly — calls to supervisors, clients, suppliers, and for navigation:
- Claim the work-related percentage of your phone bill
- A realistic work-use percentage for most tradies: 50–80%
- To justify the percentage, keep 4 weeks of records
7. Self-Education and Training
If you're upgrading skills in your current trade:
- Short courses (rigging, EWP, advanced electrical)
- Industry training courses
- TAFE units (Certificate IV, Diploma in relevant trade)
- Trade-specific books and manuals
For Self-Employed Tradies (ABN Holders)
If you operate under an ABN (not through an employer):
- Vehicle expenses can be claimed based on actual business use
- Home office if you do quoting, invoicing, and admin at home
- Public liability insurance premiums
- Accountant fees for preparing your business and personal tax return
- Advertising (website, job platform subscriptions like hipages, ServiceSeeking)
- Trade association fees
- Income protection insurance premiums (paid from after-tax income)
Common Mistakes Tradies Make
| Mistake | What to Do Instead |
|---|---|
| Not keeping a vehicle logbook | Even a 4-week sample significantly increases your claim |
| Forgetting tool purchases under $300 | Keep receipts for all tool purchases — they add up |
| Missing daily travel records | Note job sites and distances in a phone note app |
| Claiming plain work clothes | Only claim if Hi-Vis, steel-cap, or genuinely protective |
| Not claiming phone at all | Most tradies use 60–80% for work — claim it |
Records to Keep
- Receipts for all tools, PPE, and equipment
- Vehicle logbook (12 consecutive weeks)
- Licence renewal notices and payment receipts
- Phone bills and usage diary (for work percentage)
- Union membership receipts or pay slip deductions
- Training course enrolment confirmations and receipts
Complex situation with multiple income sources, subcontractor work, or capital gains? a registered tax agent (see the directory) Still unsure whether you need an agent? See our full decision guide.
Quick Checklist for Tradies
- Tools purchased (under $300: full cost; over $300: depreciate)
- Hi-vis, steel-cap boots, PPE and uniforms
- Laundry of work clothing (up to $150 without receipts)
- Vehicle expenses (logbook or cents-per-km)
- Licence renewals and certifications
- Union membership
- Phone (work-related %)
- Self-education and trade training courses
- Home office (if doing admin at home)
- Sunscreen and sun protection (for outdoor tradies)
*This guide provides general information only — not personal tax advice. For complex situations, consult a registered tax agent.*