Tax Season Tips

Written By Amit Kumar

Claim All Work-Related Expenses

You're entitled to claim deductions on expenses directly related to earning your income. Common ones for tradies include:

  • Tools and equipment: If under $300, you can claim the full amount. Over $300, you claim depreciation.

  • Protective clothing and footwear: Hi-vis gear, steel-capped boots, gloves, helmets, etc.

  • Vehicle expenses: If you use your car/ute for work, you can claim:

    • Logbook method: Tracks actual expenses (fuel, rego, insurance, depreciation)

    • Cents-per-km method: Simpler, but limited to 5,000 km

  • Work-related travel: Driving to different sites (not just your regular work location).

  • Phone & internet: Proportion used for work.

  • Union & license fees

  • Training and courses: If directly related to your trade.

📂 2. Keep Good Records

Keep receipts, invoices, and a logbook (if claiming car expenses). You can use the ATO’s myDeductions app to track everything throughout the year.

💼 3. Be Smart with Tool Purchases

Buying tools just before the end of the financial year can help reduce your taxable income. Make sure it’s for legitimate work use though.

🧾 4. Instant Asset Write-Offs

If you’re a sole trader or run a small business, you may qualify for the instant asset write-off (check current ATO thresholds). That means you can write off the full cost of eligible assets (like new tools or equipment) in the year you buy them.

🏠 5. Home Office? You Might Be Able to Claim

If you’re doing admin or quoting from home, you may be able to claim a portion of your:

  • Electricity

  • Internet

  • Office furniture depreciation

There are a few different methods to choose from, including the fixed rate or actual cost method.

🧮 6. Use a Good Accountant

A tradie-friendly tax agent can:

  • Help maximise your deductions

  • Make sure you're complying with the ATO

  • Possibly save you more than they cost

💰 7. Set Aside Tax and Super Regularly

If you’re a sole trader, make sure you're setting aside:

  • Tax (often around 25–30% of your income)

  • Superannuation contributions (optional but wise — and tax-deductible)

📅 8. Lodge on Time

Keep on top of your quarterly BAS (if you're GST-registered) and annual tax returns to avoid penalties.

Want me to give you a checklist or template to help you track deductions? Or are you running a business with employees — that opens up a few more tips too.

Amit Kumar
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