Tradie Tax Deductions: Tools, Ute & Travel (Australia)

What sparkies, chippies, plumbers and mechanics can claim — and how to stop losing receipts on site

Tradies have some of the biggest, most legitimate deductions of any worker in Australia — and lose more of them than almost anyone, because receipts get destroyed on the job. Crumpled in a glovebox, soaked, faded, lost. A claim you can't prove is a claim you can't make.

Whether you're employed or running your own ABN, here's exactly what you can claim — and how to make sure the paperwork survives long enough to count.

General information only, not personal tax advice. Verify current thresholds and rules with the ATO (ato.gov.au) or a registered tax agent.

The big three: tools, clothing, and the ute

Tools & equipment

Tools you buy for work are deductible. Lower-cost items can often be claimed immediately; more expensive gear is depreciated over its effective life (or written off under the small-business instant asset write-off — verify the current threshold). This covers hand tools, power tools, ladders, testers, even the toolbox. If a tool is part-private, claim the work-use share.

Protective clothing & laundry

This is where tradies have an edge over office workers. Protective and occupation-specific clothing — steel-cap boots, hi-vis, hard hats, safety glasses, gloves, sun protection for outdoor work — is deductible, and so is the cost of laundering and repairing it. Note the distinction: ordinary clothes (jeans, a plain t-shirt) are not deductible even if you only wear them to work.

The ute / vehicle

Vehicles are claimed one of two ways — cents per kilometre (capped at 5,000 business km) or the logbook method (your business-use % of actual costs, no cap). For tradies carrying tools between jobs, the logbook method usually wins. A genuine commercial vehicle (like a one-tonne ute) is also treated differently for FBT — worth checking your specific situation.

Travel: between jobs counts, the commute doesn't

This is the most misunderstood claim. Travel between work sites, from your workplace to a supplier, or carrying bulky tools because there's nowhere secure to store them on site — that's deductible. Your normal drive from home to your first job and back is generally private commuting and is not.

The kilometres add up fast for tradies driving all over the city — which is exactly why a logbook matters.

The rest of the checklist

  • Phone & internet — work-use percentage of the bill.
  • Licences, tickets & registrations needed for your trade (renewals; not the initial qualification to enter the trade).
  • Union and association fees.
  • Self-education that maintains or improves your trade skills.
  • Sunscreen and sun protection for those working outdoors.
  • Small consumables — tape, blades, fixings bought for work.
  • Income protection insurance (premiums, in many cases).

Mistakes that cost tradies money (or trigger the ATO)

  • Lost receipts. The number one cause of under-claiming. Snap it the moment you buy it.
  • Claiming the commute. Home to first job is private.
  • Claiming ordinary clothes. Only protective/occupation-specific clothing qualifies.
  • No logbook but claiming actual car costs. You need a valid 12-week logbook.

How TaxBot fixes the receipt problem

The worksite kills paper — so don't rely on paper. Snap each receipt into TaxBot the moment you buy: the AI reads it, files it under the right category (tools, fuel, clothing), and stores it safely so a faded docket in the glovebox never costs you a claim again. Big purchase like a new tool? TaxBot can store the warranty too. At tax time, export a clean summary for your agent.

Your action plan

  1. Photograph every work purchase as you make it.
  2. Start a 12-week logbook if you drive between jobs.
  3. Keep protective-clothing and laundry records.
  4. Review before 30 June and lodge with confidence.