Alright, tradies—What Tradies Can’t Claim: Tax Deduction Trivia! We’ve got a quick quiz to test your tax smarts and help you avoid claiming something the ATO won’t allow.
The Question:
Which of these is NOT a common tax deduction for tradies?
A) Work boots and protective clothing
B) Business-related vehicle expenses
C) Coffee and lunch breaks on-site
D) Tools and equipment purchased for work
✅ The Answer: C – Coffee and lunch breaks on-site.
Here’s the thing, tradies: while you can claim some work-related meals (like a lunch with a client to talk business), your coffee or lunch breaks on-site aren’t generally tax deductible. So, sorry, but your morning coffee run isn’t a tax write-off – even if you swear by that double-shot flat white to get you through the day.
Pro Tip: If you’re meeting clients over a meal to talk business, that could be deductible – but your sandwich and coffee onsite? Not so much.
Common Tax Deductions for Tradies (The Stuff You Can Actually Claim!)
Alright, while your coffee breaks are off the list, don’t worry – you can still claim some seriously useful stuff. Here’s a quick rundown of deductions that are absolutely fair game:
Work Boots and Protective Clothing
We know those work boots aren’t cheap, but they’re an essential part of your daily grind. The good news is, they’re deductible! So are things like safety vests, helmets, and any other protective gear you need to stay safe on the job.
Business-Related Vehicle Expenses
Using your ute to haul gear or your van to head to the next job site? The costs of running your work vehicle (fuel, insurance, repairs) are deductible – but keep track of your work versus personal use.
Pro tip: Keep a logbook!
Tools and Equipment Purchased for Work
From your trusty drill to that shiny new welder, if it’s used for work, it’s likely deductible. Some tools can be claimed straight away, while others need to be depreciated over time. Just keep those receipts – or risk that sneaky tax man catching you out!
Home Office Expenses
If you’re doing admin work at home (whether it’s late-night invoices or planning out jobs), you can claim a portion of your home expenses, like electricity and internet. Just make sure it’s actually work-related. Don’t go claiming your Netflix subscription just yet – unless you’re watching safety videos (we won’t judge).
Training and Education
Upgrading your skills? Perfect! Training courses, certifications, or any educational expenses related to your trade are typically deductible. So, if you’re looking to learn something new, it might also help you save on tax.
For even more info, here’s a link to the ATO https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/tradies-be-certain-about-what-you-can-claim
Why You Need a Bookkeeper Who Knows Your Trade
Tax deductions can be a bit tricky, but don’t sweat it. We’re here to help you get the most out of your deductions and keep your finances in excellent shape.
At Tradies Bookkeeping, we specialise in making sure tradies like you aren’t missing out on any tax benefits. We know the ins and outs of what you can claim and how to keep your records clean. And let’s be honest, your time is better spent on the tools than diving into the tax manual.
How We Can Help
Whether you’re in Sydney, Melbourne, Brisbane, Perth, or Adelaide, we’ve got you covered. With Tradies Bookkeeping on your side, you’ll never have to guess about your deductions again. We’ve got the knowledge and experience to help tradies across the country stay on top of their bookkeeping and get the most out of tax time.
