Working in the Australian trades can come with a long list of expenses. Electricians, plumbers, carpenters, bricklayers, builders, roofers and landscapers may spend money on tools, protective equipment, vehicles, training, phone services and other work-related costs throughout the year.

Some of these expenses may be tax deductible when they meet Australian Taxation Office (ATO) requirements.

However, a deduction is not simply an automatic refund. You generally need to show that an expense has a genuine connection with earning your income, that you paid for it yourself where required, and that you have appropriate records.

For the 2025–26 financial year, keeping accurate records is particularly important. The rules can also differ depending on whether you are an employee, sole trader, partnership or company.

This guide explains some of the main expenses Australian tradies should review when preparing for tax time in 2026.

Disclaimer: This article is general information only and is not personal tax advice. Tax rules can change and individual circumstances differ. Check the latest ATO information or speak with a registered tax agent before lodging your tax return.

1. Tools and Equipment

Tools are an everyday part of working in the trades, making them one of the first expense categories worth reviewing.

If you purchase tools yourself and use them to earn your income, the expense may be deductible where the relevant requirements are satisfied.

Depending on the item and your circumstances, this could include:

Power drills
Hand tools
Toolboxes
Ladders
Nail guns
Tile cutters
Compressors
Welding equipment
Replacement batteries
Specialist trade equipment

The way you claim an asset can depend on its cost and how it is used.

A relatively inexpensive item may be treated differently from an expensive piece of equipment that has a useful life extending over several years. Businesses may also have access to depreciation concessions or asset write-off rules where they meet the eligibility conditions.

Don't assume that every expensive tool can automatically be deducted in full in the year you buy it.

Keep your evidence: Save receipts or tax invoices showing the description, purchase price and date.

2. Vehicle and Work-Related Travel

Vehicle expenses are an important area for many tradies, but they are also an area where mistakes can happen.

Ordinary travel between your home and your regular workplace is generally considered private travel.

Other journeys may qualify where they are directly related to your income-earning activities.

Examples can include travelling:

Between two different job sites
From a depot to a customer location
To collect materials or equipment
Between work locations during the day
To certain work-related training or appointments

The method available to you can depend on your circumstances.

Cents-per-kilometre method

Eligible taxpayers may be able to use the cents-per-kilometre method, subject to the applicable ATO rate and annual limit for the relevant financial year.

Even when using this method, you should maintain records that demonstrate how the work-related kilometres were calculated.

Logbook method

The logbook method can involve recording vehicle use over a required continuous period and calculating the percentage of business or work-related use.

The resulting percentage can then be relevant to eligible vehicle expenses.

Because vehicle claims can become complicated when private and work use are mixed, keep detailed records and check the current ATO requirements before lodging.

3. Protective Clothing and Safety Equipment

Tradies often need specialist clothing and equipment to safely perform their work.

Not every item worn at work is deductible, though.

Ordinary clothing generally remains a private expense even when you only wear it while working.

Depending on the circumstances, qualifying protective equipment can include:

Steel-cap safety boots
Hard hats
Safety glasses
Hearing protection
Protective gloves
Respirators
High-visibility protective clothing
Specialist protective equipment

The important distinction is whether the item genuinely provides workplace protection or otherwise meets the applicable tax requirements.

What about uniforms?

Certain occupation-specific or compulsory uniforms may qualify under specific conditions. A logo on ordinary clothing does not automatically make the clothing deductible.

Check the current requirements before claiming uniforms or work clothing.

4. Laundry and Workwear Cleaning

If you have eligible protective clothing or qualifying workwear, the cost of washing or cleaning it may also be relevant.

There are circumstances where a reasonable laundry claim can be calculated without keeping an individual receipt for every wash. However, you still need records supporting the number of loads and your calculation.

For example, keeping a simple diary of how frequently you wash qualifying work clothing can make the calculation easier to support.

Dry-cleaning expenses should also be supported by receipts where applicable.

Don't treat all household laundry as a work expense simply because some of your clothes are worn on the job.

5. Trade Licences and Professional Fees

Many Australian tradies need licences, registrations or industry qualifications to continue working.

Depending on the circumstances, expenses associated with maintaining current income-earning qualifications may be deductible.

Examples may include:

Electrical licence renewals
Plumbing licence renewals
Builder registrations
Gas-related licences
High-risk work licences
Required industry registrations
Certain professional memberships

The tax treatment of an initial qualification can be different from the cost of maintaining an existing qualification.

For that reason, don't automatically assume that every licence or training payment is deductible.

6. Union and Professional Memberships

Membership fees can also be worth checking.

If you belong to a union or professional organisation because of your employment or business activities, eligible membership fees may qualify for a deduction.

Keep annual statements, receipts or other evidence showing what you paid.

The same principle applies to relevant professional subscriptions and trade publications: the expense needs to have a genuine connection with your income-earning activities.

7. Training and Self-Education

The trades are constantly changing, with new technology, safety requirements and specialist systems being introduced.

Training may be deductible where it maintains or improves skills connected with your current income-earning activities and meets the relevant requirements.

For example, depending on the circumstances, a qualified electrician undertaking additional training related to solar installation may have a stronger connection to their current work than someone studying for an unrelated career.

Possible expenses can include eligible:

Course fees
Training materials
Textbooks
Stationery
Certain travel costs

A course that enables you to move into a completely different occupation may receive different tax treatment.

8. Sun Protection for Outdoor Tradies

Builders, landscapers, roofers and other outdoor workers can spend many hours exposed to Australian sunlight.

Certain work-related sun-protection expenses may be deductible where the relevant requirements are met.

Potential examples include:

Sunscreen
Protective hats
Qualifying sunglasses
Sun-protective clothing

The item should have a genuine connection with your work rather than being an ordinary personal purchase.

Keep your receipts so the expense can be properly supported.

9. Mobile Phone and Internet Expenses

A mobile phone can be an important work tool for a tradie.

You may use it to:

Contact customers
Speak with suppliers
Send quotations
Manage appointments
Take job-site photographs
Order materials
Use trade-management software

If the phone is used for both personal and work purposes, you generally need to identify the work-related portion.

Keeping a representative usage diary can help establish a reasonable percentage.

The same principle can apply to home internet where there is genuine work-related use.

Avoid simply claiming an arbitrary percentage without records to support your calculation.

10. Working From Home and Home Office Costs

Many sole traders and small-business operators complete administration from home.

You might use part of your home for:

Preparing quotes
Sending invoices
Ordering stock
Managing accounts
Scheduling jobs
Business administration

Eligible working-from-home running expenses may be claimable under an applicable ATO method.

However, home office claims can become more complicated when occupancy expenses such as rent, mortgage interest or rates are involved.

Whether these expenses can be claimed depends on factors such as how the space is used and whether your home qualifies as a genuine place of business.

Don't assume that having a desk or computer at home automatically allows you to claim a portion of your mortgage or rent.

11. Business Materials and Consumables

For tradies running their own businesses, materials and consumables can represent a significant operating expense.

Depending on the business structure and accounting treatment, examples may include:

Screws
Sealants
Cable ties
Drill bits
Saw blades
Sandpaper
Timber
Drop sheets
Other job-specific consumables

The treatment can depend on whether the item is used, sold, supplied to a customer or retained by the business.

Keep supplier invoices and records of purchases so your accountant can determine the appropriate treatment.

12. Subcontractors and Other Labour Costs

Some trade businesses hire subcontractors or other workers to complete jobs.

Where the relevant requirements are met, genuine business labour expenses may be deductible.

However, contractor arrangements can have tax and reporting obligations of their own.

Businesses in the building and construction industry may also need to consider their Taxable Payments Annual Report (TPAR) obligations when paying eligible contractors.

Don't treat every worker as a contractor simply because they provide an invoice. Worker classification can have important tax and superannuation consequences.

13. Work Travel and Overnight Jobs

Some tradies travel away from their normal location for projects.

Depending on the circumstances, eligible work-related travel can involve:

Airfares
Public transport
Rideshare or taxi costs
Accommodation
Certain travel-related meals and incidentals

The tax treatment depends on the purpose of the trip and the circumstances surrounding it.

For longer periods of travel, additional record-keeping requirements may apply.

Keep booking confirmations, accommodation invoices and other relevant evidence.

A personal holiday combined with a small amount of work should not automatically be treated as a fully deductible business trip.

14. Accounting and Tax-Related Expenses

Running a trade business also creates administrative costs.

Depending on the circumstances, eligible expenses may include:

Accounting services
Bookkeeping
BAS preparation
Tax-agent fees
Business accounting software
Certain professional tax advice

Keep invoices from your accountant, bookkeeper and software providers.

It's much easier to correctly identify these expenses when you have organised records rather than trying to reconstruct them months later.

15. Insurance and Other Business Protection Costs

Some tradies pay for insurance connected with their work or business.

The tax treatment depends on the type of insurance and how the policy is used.

For example, certain business insurance costs may be deductible for a business, while income-protection policies can have different rules depending on how and where the policy is held.

Never assume that every insurance premium is deductible simply because you have a trade-related occupation.

Keep the policy documents and payment records and check the specific tax treatment.

Expenses You Generally Can't Claim

Knowing what not to claim is just as important as identifying legitimate deductions.

Common examples include:

Ordinary travel between home and your regular workplace
Everyday clothing
Private meals
Private entertainment
Fines and penalties
Personal expenses
Expenses already reimbursed by your employer
The private portion of mixed-use expenses

For example, buying lunch for yourself during a normal working day does not automatically turn the meal into a tax deduction.

Similarly, a speeding or parking fine doesn't become deductible simply because it occurred while travelling for work.

What Evidence Do Tradies Need?

Good record keeping is one of the easiest ways to make tax time less stressful.

Consider keeping:

Receipts and invoices

Save digital copies of receipts as soon as possible.

Vehicle records

Maintain the records required for your chosen vehicle deduction method.

Work-use calculations

If an expense is partly private and partly work-related, keep evidence supporting the percentage you claim.

Bank and card statements

A separate account or card for business spending can make transactions easier to identify.

Training records

Keep course enrolment documents, invoices and evidence showing how the training relates to your current work.

What About Expenses Under $300?

There are circumstances where taxpayers may claim certain small work-related expenses without an individual receipt, provided the applicable conditions are met.

However, the $300 rule should not be misunderstood as a blanket permission to claim anything under $300.

You still need to meet the basic requirements for a deduction and be able to explain how you calculated the claim.

Vehicle expenses and other categories can have separate rules.

When in doubt, keep the receipt anyway. Digital storage makes this much easier than it used to be.

A Simple Tax-Time Checklist for Tradies

Before preparing your 2025–26 tax return, review:

Tool and equipment purchases
Vehicle and work-related travel records
Protective clothing and safety equipment
Laundry records
Licence and registration costs
Union or professional membership fees
Training and self-education expenses
Phone and internet usage
Working-from-home records
Business materials and consumables
Contractor and subcontractor invoices
Accounting and bookkeeping costs
Eligible insurance expenses
Travel and accommodation records
Receipts and supporting documents

Final Thoughts

Tax deductions can help reduce taxable income when expenses genuinely qualify, but the goal should not be to claim as much as possible without evidence.

For Australian tradies, the better approach is to claim every legitimate expense you are entitled to, separate private spending from work-related costs, and keep reliable records throughout the year.

Tax rules can change, including vehicle rates, depreciation concessions and record-keeping requirements. Always check the latest ATO information for the 2025–26 financial year or speak with a registered tax professional before lodging your return.

Good records aren't just useful during tax time—they can make running a trade business easier throughout the entire year.

2026 Tradie Tax Guide: What Can Australian Tradies Claim? [2025–26 Update]

1. Tools and Equipment