If you work as a tradie — whether you're an employee or running your own ABN — there's a long list of things you can legitimately claim at tax time, and most tradies leave money on the table by not claiming all of them. The ATO's rule is simple and worth memorising: a deduction has to be work-related, you must have spent the money yourself (and not been reimbursed), and you need a record to prove it. Get those three right and you can claim everything below.
Tools and equipment
Tools are the obvious one, and the rules depend on cost:
- Tools costing $300 or less can be claimed in full in the year you buy them (for employees).
- Sets of tools are looked at as a whole — you can't split a $900 socket set into three $300 claims.
- More expensive tools and equipment are either written off immediately under the instant asset write-off (threshold $20,000 for 2025–26 if you run a business — confirm the current rule) or depreciated over their effective life. Work it out with the depreciation calculator.
- Don't forget tool insurance, repairs, sharpening and your tool box — all deductible — and the interest on any equipment finance.
