Essential tax deductions for Australian tradies in 2026

Tradespeople often spend more of their own money on work-related items than many other employees, and their claims receive close attention from the ATO. Getting your deductions right means a bigger refund without the audit risk. Here is what you can typically claim in 2026.

Clothing and protective gear

Clothing that protects you from injury or illness at work is deductible. This includes:

• hi-vis workwear, steel-cap boots and hard hats
• safety glasses, gloves, hearing protection and dust masks
• knee pads and wet-weather gear
• sunscreen, sunglasses and hats if you work outdoors

You can also claim the cost of washing eligible protective clothing and uniforms. Everyday clothing, such as jeans, standard work trousers and plain shirts, is not deductible, even if you only wear it on site.

Tools and equipment

Hand and power tools, toolboxes, measuring equipment, ladders, generators, compressors, nail guns and work lights are all claimable. Items costing $300 or less can be claimed immediately. More expensive equipment is depreciated over its effective life. Repairs to work tools and consumables such as screws, adhesives and blades are deductible in the year you buy them.

Vehicle and travel

You can claim car expenses when you:

• travel between job sites during the day
• carry bulky tools or equipment that you need for work and can't store at the site
• travel to pick up supplies

Use either the cents-per-kilometre method (up to 5,000 business kilometres) or the logbook method, which needs a valid 12-week logbook. Tolls, parking and trailer hire for work trips are also deductible. The ordinary commute from home to your regular workplace is not.

Licences, training and certifications

• White Card, forklift and EWP licence renewals
• first aid, confined space and working-at-heights training
• trade licence and certification renewals

The cost of your original apprenticeship qualification is generally not deductible. Renewing a licence you already need for your current job usually is.

Insurance, memberships and professional costs

• union fees and industry association memberships
• income protection insurance held outside super
• the work-related share of your phone and internet
• the cost of having your tax return prepared by a registered tax agent

The three golden rules

1. You paid for it and weren't reimbursed.
2. It is directly related to earning your income.
3. You can prove it with receipts, invoices, bank records or a logbook.

Record-keeping tips for tradies

• Photograph receipts as soon as you receive them, as paper receipts can fade over time.
• Keep a separate list of tool and equipment purchases with their dates and costs.
• Keep your vehicle logbook up to date for the full 12 weeks.
• Use a separate card for work purchases so personal and work spending don't mix.
• Keep records for five years after lodging.

This article contains general information only and does not take your personal circumstances into account. Tax and superannuation rules change, and some measures discussed may be subject to legislation. Speak with a registered tax agent before acting.