Every year we see hardworking tradies across Australia leaving thousands of dollars on the table at tax time. Between long days on job sites, quoting new work, and actually having a life, finding time to understand how to file your individual tax return online can feel like an afterthought. But those receipts crumpled in the ute’s glove box might be your ticket to a significantly healthier tax refund.

Let’s take a look at seven deductions that could put more money back in your pocket this financial year.

Staying on Top of Your Records—The Easy Way

Let’s be honest—keeping track of receipts is about as fun as untangling extension cords after a long day. But come tax time, having your paperwork sorted can mean the difference between a maxed-out refund and missing out.

A simple way to dodge the chaos? Set yourself up with the Australian Taxation Office’s myDeductions app. It acts like your digital filing cabinet, letting you snap photos of receipts on the go and categorise expenses before they have a chance to get lost in the abyss under your ute seat.

For those who prefer pen and paper, a classic docket book or an expanding folder in the glove box does the trick too. The key is consistency—record purchases as you make them and keep a running log of all work-related expenses.

Whichever method you choose, keeping your records up to date means less hassle at tax time—and more cash back for the things that matter.

1. Tools and Equipment Under $20,000

Most tradies know they can claim big-ticket items, but many don’t realise the instant asset write-off threshold sits at $20,000 per item. This means you can deduct the full cost of that new power tool, compressor, or specialised equipment immediately—not over several years. What’s new for 2024–25?
On May 14, 2024, the government announced in the Federal Budget that the $20,000 instant asset write-off for small businesses with an annual turnover of less than $10 million has been extended. Now, you’re able to immediately deduct the cost of eligible assets under $20,000—brand new or second hand—right up until June 30, 2025. This includes essential items like Milwaukee drills, Makita saws, or even that fancy jobsite radio (as long as it’s mainly for work, not weekend block parties).

The catch? The tool must be primarily used for work purposes. That shiny new circular saw that spends most weekends helping with home renovations won’t qualify for a full deduction. Keep detailed records showing how and when you use equipment if it serves dual purposes.

Don’t Forget the Fine Print

If you’re a small business with an annual turnover under $2 million, you might be eligible to claim up to 100% of the total cost for tools and equipment under this threshold.
For employees, any individual tool purchase under $300 can be immediately deducted in the same year, provided you keep your receipt.
Not sure where you stand? The ATO website outlines full eligibility criteria and thresholds—worth a quick look before you go on a spending spree at Bunnings or snag that new Makita set.

Proper documentation and understanding these thresholds could mean the difference between a decent tax refund and a great one.

Quick tip:
Instant asset write-off, sometimes called the instant asset deduction, lets you claim the full value of eligible business assets—such as tools, equipment, and even work vehicles—up to $20,000 for the 2025 year. Just make sure you buy and install the item before June 30, 2025, and that you hang onto those receipts for the ATO.

How the Instant Asset Write-Off Works for Vehicles

Thinking of upgrading your ute before June 30? You’re not alone—dealerships are seeing a flurry of tradies racing the clock, and with good reason. Thanks to the instant asset write-off, you can immediately deduct the full cost of a new (or used) vehicle, like that shiny dual-cab Ranger or HiLux, up to the $20,000 threshold for the 2025 financial year.

What does this mean for your tax return? If you purchase a vehicle that’s predominantly used for work, you can claim the full deduction straight away rather than spreading it over several years with depreciation. That’s a hefty reduction to your taxable income, and more money staying in your toolbox.

A few things to remember:

The vehicle needs to be used mainly for work purposes.
Keep those receipts and records handy to show the purchase date and business use—no one wants the ATO knocking afterwards.
The $20,000 cap is per asset, so if you’re feeling adventurous (and your cash flow allows), more than one vehicle or qualifying asset could be eligible.

With stock still tight in some parts thanks to lingering supply chain woes, don’t leave it until the last minute if a new workhorse is on your wish list. Crossing the finish line before the cutoff could translate into a bigger, better tax return.

2. Vehicle Expenses Beyond the Logbook

Your work vehicle represents one of your biggest tax deduction opportunities. While many tradies use the logbook method for claiming vehicle costs, they often miss claiming specific expenses like:

Parking fees at supplier warehouses or job sites
Electronic toll road charges between jobs
Car washing costs (yes, keeping that sign-written ute clean is deductible)
Vehicle-specific storage units and racks

A clean, well-maintained vehicle with proper storage solutions projects professionalism to clients while simultaneously creating legitimate tax deductions. Maintain separate receipts for these expenses, even if you’re using the logbook method. Don’t Forget the Big Picture

If you’ve purchased a new ute, van, or work vehicle this year, you may be eligible for the instant asset write-off. For the 2025 financial year, the threshold sits at $20,000 per asset—meaning you can claim the full cost immediately if it’s primarily used for work. With many tradies snapping up new vehicles before the June 30 deadline (and dealerships experiencing stock shortages thanks to global supply chain hiccups), now’s the time to check your eligibility.

What Can You Claim?

Beyond fuel and the purchase price, you can claim a range of ongoing expenses for your work vehicle, including:

Fuel and oil
Repairs and servicing
Insurance and registration
Roadside assistance
Interest on a vehicle loan
Depreciation (if not using instant asset write-off)

If you’re traveling from site to site, every business kilometre counts. Just remember: keep a detailed logbook for at least 12 weeks, and hang onto all your receipts—these support your claim and help maximise your return.

3. Mobile Phone and Internet Costs

Your phone is essential to your business. Yet many tradies claim only a token amount for phone expenses, not realising they can deduct a percentage based on genuine work use.

Review three months of phone bills, highlighting work-related calls and data usage. This creates a defensible percentage you can apply to your annual phone costs. The same applies to home internet when used for ordering materials, researching technical specifications, or managing your books.

Digital Tools for Hassle-Free Record Keeping

When it comes to wrangling receipts and logging expenses, there’s no need to rely on stuffed shoeboxes and faded dockets. The Australian Taxation Office’s free myDeductions app is a tradie’s best mate for taming tax paperwork on the go.

With the app, you can snap photos of receipts, track work-related trips, and categorise deductions—right from your phone. At tax time, it’s simple to email your records to yourself or your accountant, making the whole process a breeze. Less time buried in paperwork, more time back on the tools.

4. Protective Clothing and Laundry

Work boots, high-visibility gear, and speciality protective clothing are obvious deductions. Less obvious are the ongoing costs of maintaining these items. Laundry expenses for work-specific clothing count as legitimate deductions, whether you’re using commercial services or washing them yourself.

The ATO allows a reasonable claim without receipts for home laundry, and small amounts add up across a full year.

That said, the rules have tightened in recent years and the tax office is paying extra attention to laundry deductions—so make sure you’re only claiming for clothing that’s strictly work-related (like uniforms, hi-vis, or protective gear, not your weekend jeans). If your laundry claim is significant, keep records of how often you wash your work gear and consider reading up on the latest ATO guidelines to avoid any surprises.

Staying compliant ensures you don’t miss out on this often-overlooked deduction, while also keeping you on the right side of the tax man.

5. Sun Protection

Protective gear is essential for those working outdoors beneath Australia’s harsh sun. Sunscreen, hats, and UV-protective clothing are all tax-deductible when used on the job. Many tradies miss these smaller items, considering them personal expenses rather than work necessities.

Remember, outdoor workers are far more likely to get skin cancer than indoor workers. Protecting yourself isn’t just smart health practice—it’s smart tax practice too.

6. Technical and Trade Subscriptions

Industry magazines, online technical resources, and trade association memberships provide valuable knowledge that helps you stay current in your field. These subscriptions and memberships are fully deductible yet frequently overlooked.

Even digital app subscriptions for specialised trade calculators, estimating software, or technical reference materials qualify as legitimate deductions when used primarily for work purposes.

7. Home Office Running Costs

Many tradies handle quotes, invoicing, and admin work from home in the evenings. This entitles you to claim a portion of your electricity, heating, cooling, and even depreciation on office furniture. The fixed rate method allows 52 cents per work hour spent at home without detailed records.

A tradie spending just one hour each weeknight on paperwork can claim quite a bit annually using this method—money many leave unclaimed by not tracking these hours.

8. End-of-Lease Cleaning or Bond Back Services

If you’ve relocated for work—say, to get closer to a major project or new job site—you might be eligible to claim the cost of moving. That includes professional end of lease cleaning services. Many tradies overlook this, but if the rental move was necessary for your employment, expenses related to securing your bond can count.

These may include:

Bond back cleaning services
Carpet steam cleaning
Pest control treatments
Cleaning invoices as per agent requirements

Let’s say you moved from a rental in Parramatta to a site-based contract in Penrith. If your end-of-lease clean cost you $450, that’s a potential deduction—provided you have documentation to prove the work connection. Always keep itemised receipts and written records stating that the relocation was job-related.

9. Claiming the Cost of Tax Advice

Here’s a quick win: the fee you paid last year to your accountant or tax agent for preparing your return? That’s a valid deduction for this year. Whether your statement came from a suburban agent in Blacktown or a specialist tax accountant in Surry Hills, keep that invoice—for your next round of tax savings.

Just be sure to include any accounting or lodgement costs from the previous financial year in your deductions this year. Even the ATO says so. Forgetting this is like leaving cash on the table—a small detail that adds up over time.

Conclusion:

The ATO has increased its data matching capabilities significantly in recent years. Claims should always reflect your genuine work-related expenses. But being thorough isn’t the same as being dishonest. Taking the time to track and claim everything you’re legitimately entitled to—including things like bond cleaning if you’ve moved for work—isn’t gaming the system. It’s just making sure you don’t pay more tax than necessary.

Your skill and labour build Australia. Making sure you claim every legitimate deduction is just good business sense.

Stay Sharp: Why It Pays to Stay Informed

Tax rules don’t sit still—what you could claim last year might be different this year. The ATO regularly updates its guidelines, and missing a small change can mean losing out on a valuable deduction or, worse, making a claim that doesn’t stack up.

That’s why it pays to keep your finger on the pulse. Subscribe to updates from reputable sources, like the ATO or industry groups, and consider checking in with a registered tax agent or accountant—especially if your work arrangements or expenses shift. They’re across the latest legislation and can help spot hidden opportunities or steer you clear of red flags.

Getting it right isn’t just about peace of mind; it’s about keeping more of your hard-earned dollars where they belong.

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Tax Talk for Tradies: 7 Deductions You Might Be Missing

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