Spent time on the tools? It pays to learn what you can claim at tax time.
You can claim a deduction for expenses incurred as an employee tradie if:
You spent the money yourself and were not reimbursed
It was directly related to earning your income
You have a record to prove it
Include all your income on your tax return – including cash.
You can claim a deduction for the cost of travel while performing your duties. This includes travel between different work locations, including for different employers.
Normal trips between home and work are private in nature and can’t be claimed.
This applies even if you either:
live a long way from your usual workplace
have to work outside normal business hours (for example, weekend shifts).
In limited circumstances you can claim the cost of trips between home and work, where:
you had shifting places of employment (that is, you regularly worked at more than one site each day before returning home).
you were required to carry bulky tools or equipment for work and you met all of the following conditions .
The tools or equipment were essential for you to perform your employment duties and you didn’t carry them merely as a matter of choice
The tools or equipment were bulky – meaning that because of their size and weight they were awkward to transport and could only be transported conveniently by the use of a motor vehicle.
There was no secure storage for the items at the workplace.
If you claim car expenses, you must either:
Keep a logbook of your work trips
Be able to show us your claim is reasonable if you use the cents per kilometre method (for claims up to 5,000 km only).
Your vehicle is not considered to be a car if it is a vehicle with a carrying capacity of:
One tonne or more, such as a ute or panel van
Nine passengers or more, such as a minivan.
In these circumstances (for example, if you use a ute) you can claim the proportion of your vehicle expenses that relate to work – such as fuel, oil, insurance, repairs and servicing, car loan interest, registration and depreciation.
Keep receipts for your actual expenses. You cannot use the cents per kilometre method for these vehicles. While it is not a requirement to keep a logbook, it is the easiest way to show how you have calculated your work-related use of the vehicle..
If you are required to travel away from home overnight for work, you can claim a deduction for accommodation and meal expenses.
Receiving an allowance from your employer does not automatically entitle you to a deduction. You need to be able to show you were away overnight for work and you spent the money.
You can claim a deduction for:
the cost of buying, mending and cleaning uniforms that are unique and distinctive to your job (for example, a uniform your employer requires you to wear).
protective clothing your employer requires you to wear (for example, hi-vis vests, steel-capped boots and safety glasses).
You can’t claim a deduction for plain clothing worn at work, even if your employer tells you to wear it or you only wear it for work (for example, jeans or a plain shirt).
You can claim a deduction for tools or equipment you are required to buy for your job.
If you also use the tools or equipment for private purposes, you can’t claim a deduction for that use. For example, if you have a tool set that you use for private purposes half the time you can only deduct 50% of the cost. If the tools or equipment are supplied by your employer or another person, you can’t claim a deduction.
If a tool or item of work equipment you only used for work:
Cost more than $300 – you can claim a deduction for the cost over a number of years.
Cost $300 or less – you can claim an immediate deduction for the whole cost.
Other common deductible work-related expenses that you can claim include:
protective equipment such as sunscreen, sunhats and sunglasses
phone expenses if you have to make phone calls or send texts for work.
Remember, you can only claim the work-related part of the expense.
General information only, Source ATO. Please speak to our professional team to ensure you receive the right tax outcomes.