Tradies have some of the broadest deduction categories of any occupation — but also some of the highest ATO audit rates. The key is to claim everything you're entitled to, keep clear records, and never claim private expenses as business.
Tools and equipment under the instant asset write-off threshold ($20,000 for 2025-26) can be claimed in full in the year of purchase. Above the threshold, they go into the depreciation pool. Replacement tools and repairs are immediately deductible.
Vehicle expenses are usually the largest deduction. The logbook method (tracking business trips for a continuous 12-week period, valid for 5 years) gives the most accurate claim. The cents-per-kilometre method is simpler but capped at 5,000 business kilometres per year. If you use a ute or van primarily for work, the logbook method almost always gives a larger deduction.
Protective clothing and uniforms are deductible if they are occupation-specific (hi-vis, steel-cap boots, hard hats, safety glasses) or registered with AusIndustry. Plain clothing that could be worn outside work (jeans, t-shirts) is not deductible, even if you only wear it to work. Laundry costs for deductible clothing can be claimed at $1 per load (up to $150 without receipts).
Other common deductions: phone and internet (business-use percentage), trade-specific training and licences, sun protection (sunscreen, hats, sunglasses if prescription), union and professional association fees, and travel between job sites (but not home to your regular workplace).