Tradies have a lot of expenses, from the cost of tools to vehicle upkeep and maintenance to the cost of ongoing training or education to keep up with the latest industry regulations. All these costs can add up quickly, so tradies need to know about all the tax deductions available to them.
The Australian Tax Office (ATO) offers a range of deductions for tradies. These deductions can be claimed against the income you earn from your trade. A tradies tax accountant will also be of great help. Here are some of the deductions available to tradies.
1. Tools and Equipment
If you purchase tools and equipment, such as power tools, ladders, personal protective equipment (PPE), or other items specifically for use in your trade, you can claim a deduction for the cost. You can also claim the cost of repairs or maintenance for these items.
2. Vehicle Expenses
If you use your vehicle for work, you can claim a deduction for the cost of operating and maintaining it. This includes the cost of fuel, registration and insurance, as well as repairs and maintenance. If you use the ‘cents per kilometre’ method, you can claim a maximum of 5,000 kilometres per financial year.
Read more: Tradie Ute Tax Write-Off
3. Training and Education
If you undertake industry-related training or education, you may be able to claim a deduction for the cost. This includes courses, seminars, and other types of training.
4. Travel Expenses
If you travel for work, you may be able to claim a deduction for the cost of accommodation, meals, and other travel expenses. You can also claim the cost of attending industry-related conferences, seminars, or other events.
5. Clothing
If you purchase clothing specifically for work, such as uniforms, you can claim a deduction for the cost. You can also claim a deduction for protective clothing, such as steel-capped boots or hard hats.
6. Insurance
If you pay for public liability insurance, you can claim a deduction for the cost. You can also claim a deduction for the cost of workers’ compensation.
Griffiths Advisory can help you understand some of the deductions available to tradies. It’s important to keep detailed records of all your expenses, so you can easily claim deductions when it comes time to do your taxes. Contact us if you have any questions about tax deductions for tradies.
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Phil has been the Managing Director of Griffiths Advisory for 29 years, combining his expertise in taxation, business advisory, superannuation, negative gearing, and wealth creation. He also loves an active lifestyle, indulging in surfing, cycling, snowboarding, and spending quality time with his wife and two children.