Tradie Tax Return Done Properly
Electrician, plumber, carpenter, builder, painter, landscaper or mechanic - we get you every deduction you are entitled to on your tools, ute, gear and licences. No software, no fuss. Receipts in the ute? That is fine.
What can a tradie claim on tax in Australia?
A tradie can generally claim tools and equipment, protective clothing and safety gear (safety boots, hard hats and hi-vis), work-related vehicle and travel costs, the work-use portion of phone and internet, trade licences and registration, training and courses, and union or trade association fees. Tools costing $300 or less can usually be claimed as an immediate deduction, while items over $300 are depreciated over their effective life. You do not need Xero or MYOB - bank statements or a shoebox of receipts is enough. Tax7 is an ATO registered tax agent; we start with a free assessment and give you a fixed-fee quote before any work begins.
Last updated: July 2026
Tax Returns for Every Trade
Whether you are a wage-earning tradie with a PAYG payment summary, an ABN subcontractor, or running a small trade company, the deductions in your industry can be substantial - and easy to miss. We know what tradies claim and we make sure nothing slips through.
What Can Tradies Claim on Tax?
These are the deduction categories most tradies can claim. Keep your receipts and we will do the rest.
Tools & Equipment
- Hand tools and power tools
- Measuring and trade-specific tools
- Toolboxes and tool storage systems
- Ute trays, canopies and tool transport
Vehicle & Travel
- Car or ute running costs for job-site travel
- Transporting tools and equipment
- Work-related errands between jobs
- Logbook or cents-per-kilometre method
Protective Clothing & PPE
- Safety boots and hard hats
- High-visibility clothing
- Safety glasses and gloves
- Laundry and cleaning of work-specific gear
Phone & Internet
- Work portion of your mobile phone bill
- Work portion of your internet
- Work-related calls for quotes and jobs
Training & Licences
- Trade licence and registration fees
- Electrical, plumbing and building licences
- Trade courses, workshops and safety training
- Technical training to upgrade your skills
Union & Association Fees
- Trade union fees
- Master Builders Association and similar
- Trade association memberships
- Public liability, tool and income protection insurance
Materials & Supplies
Building materials, electrical and plumbing supplies, and consumables can be claimed where they are not reimbursed - keep the receipts.
Accounting & Tax Fees
The fees you pay us to prepare your return and BAS are themselves a deductible business expense.
Tools Under $300 vs Over $300
How the cost of a tool changes the way it is claimed (general ATO rule).
| Feature | Tools $300 or less | Tools over $300 |
|---|---|---|
| How it is claimed | Immediate deduction in the year of purchase | Depreciated over its effective life |
| Timing of the benefit | Full amount claimed straight away | Spread across multiple years |
| Examples | Drill, hand tools, small power tools, smaller PPE | Larger equipment, expensive power tools, ute canopy |
| Records needed | Receipt showing date and amount | Receipt plus a depreciation schedule |
The $300 threshold is a long-standing general ATO rule for work-related tools and equipment. We confirm how each item should be treated for your specific circumstances.
How We Handle Your Tradie Tax Return
- 1
Free assessment
We start with a free, no-obligation chat about your work, your income, and how many years need doing - so you know where you stand.
- 2
Send us what you have
Bank statements, a shoebox of receipts, or photos on your phone - no Xero or MYOB required. If your records are messy, that is completely fine.
- 3
We reconstruct and reconcile
Our accountants sort through your transactions, reconstruct your records, and identify every tool, vehicle, gear, phone, and licence deduction you are entitled to.
- 4
PSI and structure check
If you are a subcontractor on an ABN, we check whether Personal Services Income rules apply and advise on the best structure for your situation.
- 5
You get a fixed-fee quote
Before we lodge, you receive a fixed-fee quote for the work, so there are no surprises. Our fee is a deductible business expense.
- 6
We lodge with the ATO
We prepare and lodge your return (and BAS if you are registered for GST), then help you set up a simple rhythm to stay on top of it next year.
No Xero, No MYOB? No Problem.
Most tradies do not run accounting software - and you do not need to. Bank statements only is fine. We reconstruct your records from your bank data and whatever receipts you have, so you can keep doing the trade instead of the paperwork.
Related Services for Tradies
Contractor Tax
Tax services for contractors, subbies and freelancers, including PSI and structure advice.
Learn more →PSI Tax Return
On an ABN as a solo subbie? Find out whether Personal Services Income rules apply to you.
Learn more →Sole Traders & Partnerships
Complete tax and BAS services for tradies running as a sole trader or partnership.
Learn more →Tradie Deduction Finder
Browse the full list of deductions tradies can claim, category by category.
Explore →Tax Calculator
Estimate your tax and refund before you lodge with our free Australian tax calculator.
Calculate →Talk to Us
Get in touch and we will point you to the right service for your trade and situation.
Contact us →Disclaimer: The information on this page is general in nature and does not constitute financial, tax, or legal advice. What you can claim depends on your individual circumstances and the accuracy of the information provided. Tax7 is an ATO registered tax agent. We recommend booking a consultation for advice tailored to your situation.
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Free assessment, fixed-fee quote, and every deduction you are entitled to. Get started today.
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