Tax time FAQs: Everything tradies need to know

Do I need to keep receipts for everything that I want to claim?

You need evidence to show how you worked out your claim and, in most cases, that means receipts. Plus, without receipts, you could miss out on deductions you’re actually entitled to.

Tip: Did you know you can use the PowerPass app to keep track of your receipts all year round?

My boss has a first aid kit onsite, but I’ve also bought one to keep in my work vehicle. Can I claim the cost of it?

No, first aid kits and medical- or health‑related items are generally considered private expenses, so you can’t claim them as a deduction.

I enlisted the help of a business coach. Is this something I can claim on tax?

If the coaching is directly related to earning your business income, the cost is generally tax‑deductible. Keep records showing what you paid for and how the coaching supported your business.

My dog comes with me on site. Can I claim anything for him?

You can claim dog‑related expenses if your role specifically requires a trained guard dog and your dog has been trained from a young age for that role and used for security work. Costs can’t be claimed if your dog is treated more like the family pet.

I keep seeing posts online about what tradies “can claim”. How do I know what’s accurate and what’s just incorrect or misleading?

There’s a lot of information online, and not all of it is right. Always check where the advice is coming from. Old, overseas or unverified posts often don’t apply to Australian tax. Stick with trusted sources like the ATO website, the ATO app or a registered tax agent. Be cautious of posts that promise big deductions or say everyone can claim the same thing. What you can claim depends on your work and your records. If something sounds too good to be true, take a moment to check it before acting on it.

Does everyone need to lodge a tax return?

It depends. Yes, if you earned more than $18,200 from things, including work, government payments or investments, or if any tax was taken out of your income. If you’re a sole trader, you’ll need to lodge a return every year, no matter how much you earned. If you find you don’t need to lodge, just let us know by submitting a non-lodgment advice through myGov. If you are unsure, use the ‘Do I Need to Lodge tool’ on the ATO website or speak with a registered tax agent.

How does myDeductions work?

The myDeductions tool in the ATO app helps you keep everything in one place. You can snap photos of your receipts, track your work kilometres and record all your work‑related expenses as you go. When you’re ready to lodge, you can export your records straight into your tax return or send them to your registered tax agent.

I work on different jobsites most of the time, but do paperwork at home. Can I still claim work from home (WFH) expenses?

You may be able to if you’re genuinely working from home to do your job – not just doing quick tasks, like checking emails or taking the odd phone call – and if WFH means you incur extra running costs. Keep records to show the expenses you’re claiming and see the WFH page on the ATO’s website for more info.

I’m confused about how to claim phone and data expenses when I’m WFH. Should I apply a fixed rate or calculate work-related use?

If you’re eligible to claim a deduction, you could use either the fixed rate or actual costs method. If you go with actual costs based on your work-related use, you’ll need records, such as your

I use my vehicle for work. Can I claim the cost of fitting locked boxes to it?

Yes, when you add a locked box to your vehicle, the cost becomes part of the overall value of the vehicle. That means you can claim it through your decline in value (depreciation) deduction for your vehicle over time. If you use your vehicle for work and private use, remember to apportion deductions for any private use. Check out the ATO’s guidance on the cost of depreciating assets.

I’m a qualified sparky and sole trader, and own an investment property. Can I claim the time spent maintaining my property?

No, you can’t claim the value of your labour when you’re doing repairs, maintenance or improvements on an investment property. You can claim the cost of the materials you buy if the work is for a repair. Just be careful not to claim them as part of your sole trader business.

I’m an apprentice. What kinds of things can I claim this year?

Apprentices can claim protective clothing, tools, textbooks and manuals, and travel between job sites using their own car. You may also be able to claim some course fees if they relate to your current apprenticeship. Many apprentices forget that phone use, data and small equipment purchases can also be deductible if used for work. just remember to apportion these claims to exclude any personal use. Good record keeping throughout the year makes tax time faster and easier.  

Tip: Want to find out more? Check out our article on what trade apprentices can claim on tax.

I’m doing some carpentry for an owner-builder who’s working alongside me. If I buy him lunch, does that qualify as a deduction?

No, you can’t claim a deduction for food or drink you provide to someone else, including clients or people you’re working with. With limited exceptions relating to travel and overtime, the cost of food and drink is private and not deductible.

I’m entering some work in an industry competition, can I claim the entry fees?

If the competition directly relates to earning your income, you may be able to claim the entry fees. If it includes non‑work extras, like a social event or party, you can only claim the work‑related portion.

How long do I have if I need to amend something in my tax return?

Most individuals have two years to amend their tax return. The clock starts the day after your notice of assessment is issued by the ATO. For sole traders, the rules have recently changed. For 2023-24 and earlier, you will generally have two years to make amendments, and from 2024-25 onwards, you’ll have four years to make an amendment.

The mental and physical health of my employees is a top priority, so I installed a mini-gym at our office headquarters for them to use as needed. What can I claim on tax related to this?

You can generally claim deductions for the cost of setting up and maintaining an onsite gym, as long as it’s primarily for your employees’ benefit and use. How you work out your deductions will depend on the depreciation method your business uses. Offering an onsite gym may be exempt from Fringe Benefits Tax (FBT) if certain conditions are met. But if you pay for external gym memberships for your staff, those are usually subject to FBT.

Tip: Bunnings Trade is proud to partner with TIACS, the home of blue collar counselling. Not sure what TIACS is? Find out more about their free mental health support services.

I use my phone, a ring light and editing software to record footage for our social media platforms. Is this all tax deductible?

If content creation is a part of your business marketing or income‑earning activities, then the related costs are generally deductible. If you use the items for both private and work purposes, you need to apportion your deduction, as you can only claim the work-related use of these items. This can include: the decline in value of filming gear; software and apps you use for editing or designing content; phone and data costs; and phone cases, chargers or mounts used for filming on jobsites. Keep thorough records showing how each item relates to earning income.

I have a client-facing office that plays streaming services throughout the day as entertainment and ambience, can I claim this?

Streaming services count as entertainment, so you can’t claim them as a deduction in your tax return. However, if you are using a television to display essential business information to your customers (for example: menus, promotions or other service details), you can claim the decline in value of the television and the cost of running it (such as electricity).

Want to make tax time easier next year?

Check out our article on the new tax rules for this year.

The information in this article is general in nature. It doesn’t take into account your specific financial position, needs or circumstances. You should look at your own financial position, objectives and requirements and seek professional advice before making any financial decisions