What can a trade apprentice claim on tax?

Even if you’re not a full-time tradie just yet, if you’re a trade apprentice earning while you’re learning, you are entitled to claim tax deductions at the end of the financial year for work-related expenses, just like your fully qualified colleagues.

There are a host of work-related items for which tradespeople may be able to claim a tax deduction, from tools and mobile phone costs to sunscreen and safety glasses; the Australian Taxation Office (ATO) website has a comprehensive list. Generally, a trade apprentice can claim most expenses a qualified tradie can, but there are a few quirks that could be useful to understand. Here’s what you need to know when it comes to tax claims for apprentices.

Basic tax rules for trade apprentices

Remember the three basic rules of claiming a deduction:

• There has to be a close connection between the expense and what you do for work.
• You must have paid for it yourself (and not have the cost reimbursed later on).
• You need to have a supporting record, such as a receipt or a logbook of vehicle use.

And, as you’d expect, if your employer reimburses you for a particular purchase, you can’t claim it as a tax-deductible expense, and there’s no need to include it on your tax return.

Rules around allowances for apprentices

If your employer pays you an allowance, such as for tools, or compensation for certain working conditions, like working on a multistorey building, “anything your employer reports as allowance on your income statement needs to be included in your tax return,” explains ATO Assistant Commissioner Anita Challen. For example, if you get paid double time for working on Sundays, it must be declared as income. If you get a tool allowance, you declare the allowance as income on your tax return. If you spend the allowance on tools used for work, you can either claim a decline in value deduction over the life of the asset, or an immediate deduction if the cost of the asset is $300 or less and certain other conditions are met. If it is more than $300, you’ll have to claim the cost over a longer period of time.

However, “Some allowances don’t show up on your income statement but will appear on your payslip,” Anita adds. “For certain allowances, if you spend the full amount on work-related items and you’re not claiming a deduction, you don’t need to include them in your tax return.” Travel and overtime meal allowances may fall into this bracket.

Tip: Did you know you might be eligible for a PowerPass Apprentice membership?

Vehicle deductions apprentices can claim

Where you use your own vehicle for work, you can claim a deduction. What you can claim and how depends on whether the vehicle is classed as a car or other vehicle. For cars, you work out your tax deduction using either the cents-per-kilometre or logbook method. For other vehicles, such as a ute or motorbike, you can claim your actual costs for work-related use; keep all relevant receipts and maintain a record of work-related travel.

You usually can’t claim for trips between home and work, however there are some exceptions. For example, you can claim for trips if you’re carrying tools essential for your job, they’re too bulky or heavy to be reasonably transported other than by vehicle and there’s no secure storage onsite. You can also claim for trips between worksites on the same day, and if you attend TAFE, as an example, you can claim a deduction for the cost of travel from your home or workplace to your place of education and back.

The myDeductions tool in the ATO app is a simple way you can record all your work-related trips and you can easily prefill these as tax deductions in your tax return or share the information with your tax professional.

Training, course fees and TAFE deductions

Training costs you pay that directly relate to your job are also eligible for a tax deduction. “If the study is linked to the work you do now, you can usually claim things like course fees, student services fees, textbooks, journals and stationery,” Anita says. “For items over $300 that you use for study, like a laptop, you can claim the decline in value as a deduction over time.”

However, you can’t claim the cost of a course if it’s for getting a new job or switching trades that aren’t connected to what you do now.

Include all your income

Make sure you include all the income you earned during the year. This covers wages from any job, such as full time, part time, casual or labour hire, as well as cash jobs and work you pick up through online platforms or the sharing economy. You also need to include other income such as bank interest, some government payments and earnings from investments.

Tip: Remember to double check the source of your tax advice

“We’re seeing more AI‑generated summaries, social media myths and word‑of‑mouth advice at tax time, and some of it looks convincing but is simply wrong,” says ATO Assistant Commissioner Anita Challen. “A quick pause to check the date, source and context on ato.gov.au, or checking with a registered tax professional, helps you avoid common mistakes and keeps your return on track.”

Need more financial support and tips?

Read our guide to apprenticeship support payments you could be eligible for.

*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.