If you work in the trades, as a sparky, chippy, plumber, landscaper, painter, or contractor, there’s a fair chance that you’re leaving money on the table at tax time.
Tradies are great on the tools, but paperwork often comes second to getting jobs done.
The result? Legitimate deductions get missed and you end up paying more tax than you need to.
Here are the most commonly overlooked deductions we see for tradies at MDS Accounting.
1. Tools and Equipment
Smaller tools may be claimable in full in the year of purchase; larger items like compressors or scaffolding are generally depreciated.
Don’t forget consumables, such as batteries, blades, bits — they add up fast!
2. Vehicle and Travel
If you use a Ute, van, or truck for work, you may be able to claim fuel, rego, insurance, servicing, tyres, depreciation, and finance costs.
A properly kept 12-week logbook is often the single most valuable piece of paperwork a tradie has.
3. Protective Clothing and Laundry
Steel-caps, hi-vis, sun protection, safety glasses, and branded uniforms are generally deductible, as well as laundry costs for eligible work clothing.
4. Phone, Internet and Tech
The work-related portion of your phone, home internet, tablet, job management apps, and cloud accounting software is typically claimable. A four-week usage diary supports your claim.
5. Training and Licences
Renewing registrations and certifications (white card, trade licences, first aid), short courses, and industry association fees are generally deductible where they relate to your current work.
6. Home Office Admin
If you quote and invoice from home, a portion of electricity, internet, and office costs can often be claimed.
7. Insurance, Fees and Subscriptions
Income protection (held outside super), public liability, tool insurance, union fees, and trade subscriptions are worth capturing.
8. Super Contributions
Sole traders and contractors aren’t required to pay themselves super, but voluntary concessional contributions can reduce your taxable income while building long-term wealth, within the caps that apply.
9. Business Running Costs
Interest on equipment finance, bank fees, merchant fees, bookkeeping, and tax agent fees are all deductible.
10. Bad Debts
Invoiced income that genuinely can’t be recovered may be deductible if written off correctly before 30 June.
The Real Issue: Record Keeping
Most missed deductions come down to missing records. A few simple habits fix that:
• Separate business bank account and card
• Photo every receipt as you get it
• Use cloud accounting (Xero or MYOB) year-round
• Keep your logbook current
• Catch up with your accountant quarterly, not just at year-end
How MDS Can Help
Every tradie’s situation is different… A sole trader in a ute will have different needs to a contractor running a team. Your business structure will also change what is claimable.
At MDS Accounting & Financial Services in Ballarat, we help tradies across the region claim everything they’re entitled to, stay organised, and structure their business for long-term growth.
Call MDS on (03) 5333 3453 or book an appointment online.
This article provides general information only and does not constitute personal tax advice. Tax rules change regularly and your eligibility depends on your circumstances. Please speak to a registered tax agent before acting on any information in this article.
