What Can I Claim on Tax as a Tradie

Tax time does not have to be stressful. As a tradie in Australia, you can claim a wide range of work-related expenses to reduce your tax bill. But figuring out what’s claimable and what’s not can be tricky. Being a tradie comes with its perks, but when tax time rolls around, you might be scratching your head, asking, “What can I claim on tax?” Do not worry—this guide breaks it all down, making it easy for you to know exactly what deductions you are entitled to. Let’s jump in!

For Employees: What Can You Claim

What can tradies claim on tax? As a tradie employee, you can claim expenses that meet the following criteria:

• You spent the money yourself, the expense must not be reimbursed by your employer.
• It directly relates to earning your income.
• A receipt or documentation is necessary to prove the expense.

Here are common employee deductions based on ATO (Australian Taxation Office):

1.Protective Clothing and Equipment

High-visibility vests, steel-capped boots, or gloves.

Safety items like helmets, safety glasses, earmuffs, sunscreen, and sunglasses for outdoor work.

2.Tools and Equipment

Tools you buy for work purposes can be claimed. For example, the EcoFlow DELTA Pro 3 Portable Power Station, which offers 230V and 4000W in a single unit capable of powering almost all home appliances, is an excellent tool for employees who need reliable energy on-site. Its cost can be claimed as a deduction, provided it’s used for work-related purposes.

Additionally, if you’re investing in energy-efficient equipment, you may be eligible for solar incentives that help offset the cost of solar-powered tools and systems. These incentives can provide tax benefits and rebates, making sustainable energy solutions more affordable for tradies.

If the tool costs more than $300, you claim its depreciation over time. Items costing $300 or less can be claimed as an immediate deduction.

3.Car Expenses

You may claim trips between home and work if carrying bulky tools essential for your role and no secure storage is available at work.

4.Other Work-Related Expenses

Licenses or permits needed for your role (excluding private driver’s licenses).

Self-education directly related to your job.

Phone and internet costs used for work purposes. (You may be interested in how to work remotely while camping.)

How to Claim Tax Deduction as an Employee

• Collect and organize receipts, invoices, or other evidence for your expenses.
• Use tools like the ATO’s myDeductions app to track and categorize your deductions.
• If your expense has both personal and work-related use, calculate the work-related portion accurately.
• For car expenses, choose the appropriate ATO-approved method:

Logbook method: Track your car’s work-related use over 12 weeks to calculate the percentage of business use.

Cents per kilometre method: Claim a set rate per kilometre for up to 5,000 km of work-related travel.

• Lodge your claim through your tax return, either via myTax or with a tax agent, ensuring you provide all required documentation.

For Small Business Owners: What You Can Claim

Running a small business opens the door to a broader range of deductions, provided they meet these conditions:

• The expense is directly related to running your business.
• If it’s for both business and private use, you can only claim the business portion.
• You must have records to substantiate the expense.

Here are common small business deductions based on ATO:

1.Operating Expenses

Items like drop sheets, duct tape, and consumables such as printer ink.

Insurance policies like public liability and professional indemnity.

2.Protective Gear

Equipment like gloves, face masks, and sanitizers to ensure workplace safety.

3.Business Assets

Tools, machinery, or vehicles used for your business.

Assets under $20,000 may qualify for instant asset write-off until 30 June 2025.

4.Motor Vehicle Expenses

For vehicles used in business, claim either the actual expenses (fuel, maintenance, etc.) or use the cents-per-kilometre method.

How to Claim Tax Deduction as a Small Business Owner

• Maintain detailed records of all business-related expenses and income.
• Keep all receipts, invoices, and relevant records for at least five years.
• Use accounting software to track deductions and calculate depreciation for assets.
• For vehicles, keep a logbook or other records to substantiate business use.
• Complete your business tax return using the appropriate forms for your business structure.
• If needed, seek professional advice to ensure all eligible deductions are included.

What Can I Claim on Tax without Receipts

You can claim certain tax deductions without receipts, but you must still maintain some form of evidence to substantiate your claims. Here’s a breakdown:

Work-Related Expenses Without Receipts

Expenses Under $300: If your total work-related expenses are $300 or less, you don’t need to provide receipts. However, you must still explain what the expenses were for and how they relate to your job.

Laundry Costs: You can claim up to $150 for laundry expenses (excluding dry cleaning) without receipts. If questioned, you need to demonstrate how you calculated this amount.

Small Expenses: For individual work-related expenses under $10, you can claim without receipts, as long as the total doesn’t exceed $200. Keeping a written record is required.

Hard-to-Get Receipts

If obtaining a receipt is difficult (e.g., for certain small transactions), you can create a written record detailing:

• What you purchased
• The amount and date of the expense
• The supplier or business name
• The nature of the goods or services

Bank Statements as Evidence

If receipts are unavailable, you may use bank or income statements as evidence, provided they include:

• The supplier’s name
• The expense amount
• Details of the goods or services
• Payment date and documentation date

It should be noted that claims without receipts are subject to ATO scrutiny. Keep written records or alternative evidence to justify your claims. For larger or complex deductions, it’s best to retain receipts or seek advice from a tax agent.

By following these guidelines, you can make valid claims while staying compliant with tax laws.

Conclusion

So, what can I claim on tax as a tradie? From car expenses and tools to education and travel, there are plenty of deductions to help you save money. The key is keeping thorough records and understanding what qualifies. Do not wait—get your receipts in order and make this tax season stress-free. Happy claiming! Also, consider investing in a portable solar power station like EcoFlow DELTA Pro 3 to further optimize energy efficiency and unlock potential tax benefits.

FAQ

How much can I claim for gifts without receipts?

You can claim up to $10 for gifts or donations without a receipt. However, if the donation exceeds $10, you will need to provide a receipt, whether it was made in cash, via electronic payments, or any other method. Keep track of your donations to ensure you are claiming the correct amount! (Check out the best gifts for photographers.)

How much laundry can I claim on tax without receipts?

If you are claiming laundry expenses on your tax, you do not need receipts if the total claim is under $150. While it is always best to keep proof for all deductions, the ATO allows you to claim up to this amount without written evidence for laundry costs. Just make sure the claim is reasonable and related to your work.

How many kilometers can you claim on tax without receipts?

You can claim up to 5,000 business kilometers on your tax without needing receipts or a logbook. This is for the financial year, and as long as the travel is work-related, you do not have to provide written evidence. However, it is a good idea to keep a record of your trips, just in case you need to back up your claim.