When tax time rolls around, it’s important to know what you can claim to ensure you’re getting the most out of your tax return.

As a tradesperson, you’re entitled to claim a range of work-related expenses that can help reduce your taxable income.

Let’s break down some of the key deductions you can make to keep more money in your pocket.

1. Tools and Equipment

If you’ve bought tools or equipment for your job, you can claim these expenses on your tax return. This includes everything from power tools to smaller items like hammers and wrenches. You can claim an immediate deduction for tools that cost $300 or less, while more expensive items need to be depreciated over their useful life. Remember, the tools you’re claiming must be directly related to your work.

2. Protective Clothing and Safety Gear

Safety comes first on the job, and the good news is that you can claim the cost of protective clothing and gear. This includes items like steel-capped boots, hard hats, high-visibility clothing, and gloves. If you need to buy sun protection like sunscreen, sunglasses, or hats for outdoor work, these can also be claimed. Just make sure the gear is essential for your work and not for personal use.

3. Vehicle and Travel Expenses

As a tradie, you probably rely on your vehicle to get to job sites, carry tools, and transport materials. You can claim a deduction for vehicle expenses if you use your car for work-related travel. This includes trips between job sites or when transporting bulky tools that can’t be securely stored at your workplace. There are two ways to claim: using the cents-per-kilometre method or by keeping a logbook to track actual expenses. Remember, you can’t claim for the normal commute between your home and regular workplace.

4. Work-Related Courses and Training

Keeping your skills sharp is crucial in the trades, and any work-related courses or training you undertake can be claimed on your tax return. Whether it’s a first aid course or a certification that helps you do your job better, the costs can be deducted. Just make sure the training is directly connected to your current job and not for a new career.

5. Union Fees and Licenses

If you’re a member of a trade union or professional association, you can claim the cost of your membership fees. Additionally, if you need to renew licenses or certifications for your trade, these costs are also deductible. This includes items like electrical licenses, plumbing certifications, or white card renewals.

Tax time doesn’t have to be stressful for tradies. Knowing what you can claim can maximise your tax return and keep more of your hard-earned money.

From tools and protective clothing to vehicle expenses and training costs, there are plenty of deductions available.

Keep good records of your expenses throughout the year, and don’t hesitate to contact a tax professional if you need help.