10 things you can claim as a deduction if you’re a tradie

When it comes to running a trade business, understanding what you can claim as a tax deduction is crucial. Not only does it save you money, but it also helps you keep your business healthy. Here are 10 things you can generally claim:

1. Tools and Equipment

If you’re a tradesperson, you probably have a toolbox that would make any DIY enthusiast weep with envy. You can claim the cost of tools and equipment you use for work. This includes things like power tools, hand tools, and even protective gear. Just remember, if it’s for work, keep the receipts. Depending on there cost you may need to spread the deductions over a few years. See point 10.

2. Vehicle Expenses

If you're driving around to jobs, you can claim vehicle expenses. You have two options here: the cents per kilometer method (up to 5,000 km) or the logbook method, which requires you to keep a detailed log of your business-related travel. Choose carefully.

3. Work-Related Clothing

Yes, you can claim the cost of uniforms and protective clothing. So if you’re wearing high-vis shirts, keep the tags! Just remember, if it’s just regular clothing, it’s not deductible. Sorry, you can't claim your favorite pair of jeans.

4. Home Office Expenses

If you do any admin work from home, you may claim a portion of your home office expenses. This includes things like internet, phone bills, light and heat. Alternatively, you may claim a fixed hourly rate for every hour you work from home.

5. Training and Education

Investing in your skills? Good for you! You can claim deductions for courses and training that relate directly to your trade. Just make sure it’s relevant.

6. Insurance

Any insurance you pay for your tools, equipment, or business is deductible. This includes public liability insurance, income protection insurance, and tool insurance.

7. Advertising and Marketing Costs

If you’re spending money to promote your trade business, you can claim those costs too. This includes website expenses, business cards, and even social media advertising.

8. Subcontractor Expenses

If you hire subcontractors, you can claim their fees as a business expense. Just make sure they’re legitimate subcontractors and not your mate doing you a favour.

9. Interest on Loans

If you’ve taken out a loan to buy tools or equipment, the interest on that loan is also deductible. Just don’t forget to keep those statements.

10. Depreciation

For larger items like vehicles and expensive tools, you can claim depreciation over time. This means you can spread the deduction over the life of the asset, which can really help.

Understanding what you can claim as a tax deduction is essential for your business. Keep those receipts, stay organised, and talk with a tax professional if you’re unsure about anything.

If you have any questions please contact me paul@congdonfuzi.com.au .