Tradie tools and equipment tax deductions guide

Tools need a clear work connection

Tools and equipment can be deductible when you buy them for your trade and use them to earn income. If the same item is also used privately, only the work-use portion should be claimed.

Keep receipts that show the item, date, supplier and price. A bank line without an itemised invoice is harder to defend.

Immediate claims and depreciation

Lower-cost items may be deductible straight away in some circumstances. More expensive tools and equipment may need to be claimed over time through decline in value rules.

For sets of tools, replacement parts and upgrades, the treatment can depend on what was purchased and how it is used.

Repairs, insurance and consumables

Repairs to work tools, insurance for work equipment and consumables used on jobs can be relevant deductions. Keep these separate from private hardware-store purchases so your return is cleaner.

Protective gear and site safety items

Steel-capped boots, hard hats, gloves, safety glasses, masks, high-vis items and sun protection may be claimable where they protect you from real work risks and you bought them yourself.

Ordinary clothing is usually private, even if it is durable or worn mostly on site.

Records to keep

• Receipts and invoices for tools and equipment.
• Photos or notes for high-value items used on jobs.
• Repair, servicing and insurance records.
• A work-use percentage for mixed-use tools.
• Employer reimbursement details, if any.

Common questions

Can tradies claim tools on tax?

Yes, where the tools are used for work, paid for by you, not reimbursed and supported by records. The timing of the deduction depends on the cost and rules that apply.

Can apprentices claim tools?

Apprentices may be able to claim tools required for their current work or training, subject to work use and records.

Can I claim tools bought in cash?

Cash purchases need evidence. Keep itemised receipts and notes showing the work purpose.