Tax Guide for Tradies 2025
Maximise your tax return with this comprehensive guide for electricians, plumbers, carpenters, and all trades.
$5,000+
Typical Deductions
88c/km
Vehicle Rate
$300
Instant Tool Write-off
$150
No-Receipt Laundry
🔧 Key Tax Tips for Tradies
DO Claim:
- ✓ All work tools (instant if under $300)
- ✓ Vehicle expenses (work travel)
- ✓ Hi-vis, safety gear, steel caps
- ✓ Trade licence fees
- ✓ Union fees
- ✓ Phone (work % only)
DON'T Claim:
- ✗ Home to first job site travel
- ✗ Plain work clothes
- ✗ Tools provided by employer
- ✗ Meals during normal workday
- ✗ Personal phone calls
- ✗ Traffic fines
🚗 Vehicle Deductions - Two Methods
Cents Per Kilometre
- • 88 cents per kilometre
- • Maximum 5,000 km per year
- • Max claim: $4,400
- • No receipts needed
- • Best for low work kms
Logbook Method
- • Claim actual work percentage
- • Keep 12-week logbook
- • Include ALL car expenses
- • Valid for 5 years
- • Best for high work use
Tip: If you drive a ute/van mainly for work, the logbook method often gives bigger deductions.
Tools & Equipment
| Deduction | Amount | Notes |
|---|---|---|
| Tools under $300 each | Full cost | Instant deduction |
| Tools over $300 each | Depreciated | Over effective life |
| Tool kit/bag | $50-300 | Storage and transport |
| Safety equipment | Actual cost | Hard hats, safety glasses |
| Test equipment | Actual cost | Multimeters, etc. |
| Tool repairs/sharpening | Actual cost | Maintenance costs |
Vehicle Expenses
| Deduction | Amount | Notes |
|---|---|---|
| Cents per km method | 88c/km | Max 5,000 km |
| Logbook method | Work % | Keep 12-week logbook |
| Fuel & oil | Work % | If using logbook |
| Registration/insurance | Work % | If using logbook |
| Repairs/servicing | Work % | If using logbook |
| Ute/van lease payments | Work % | If using logbook |
Clothing & Safety
| Deduction | Amount | Notes |
|---|---|---|
| Hi-vis clothing | $100-300 | Required for safety |
| Steel-cap boots | $150-400 | Safety footwear |
| Occupation-specific uniform | Actual cost | Company branded |
| Sun protection | $50-150 | Sunscreen, hat, sunglasses |
| Laundry | $150 or $1/load | For work clothes |
| Wet weather gear | $50-200 | If work outdoors |
Training & Licences
| Deduction | Amount | Notes |
|---|---|---|
| Trade licence renewal | $100-500 | Electrical, plumbing etc. |
| White/blue card | $50-100 | Construction induction |
| First aid certificate | $100-200 | If required |
| Forklift/EWP licence | $200-500 | Additional certifications |
| CPD courses | Actual cost | Continuing education |
| Union fees | $400-800 | CFMEU, ETU, etc. |
When Can You Claim Travel?
✓ CAN Claim
- • Between job sites during the day
- • Home to site if carrying bulky tools
- • To training/courses from work
- • To tool shop during workday
- • Travel to different employer's site
✗ CANNOT Claim
- • Home to first site (commuting)
- • Last site to home (commuting)
- • Personal detours during work
- • Travel for personal errands
- • Fines or parking tickets
Tool Depreciation Rates
Tools costing more than $300 must be depreciated. Common effective lives:
| Tool Type | Effective Life | Yearly Rate |
|---|---|---|
| Power tools (general) | 5 years | 20% |
| Cordless drill/driver | 3 years | 33% |
| Toolbox/chest | 10 years | 10% |
| Ladders/scaffolding | 10 years | 10% |
| Test equipment | 5 years | 20% |
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