Ultimate Tradie Tax Deduction Guide

The Ultimate Guide to Maximising Tax Deductions for Tradies

As a tradie, knowing what you can claim can significantly boost your income tax return. This comprehensive Gotax guide combines the best tips and advice to ensure you maximize your tax deductions and achieve the maximum refund.

Index

1. Intro
2. Why Keep Accurate Tax Records
3. What Tradies Can Claim
   • Tools and Equipment
   • Protective Clothing
   • Sun Protection
   • Work Clothing
   • Laundry and Cleaning
   • Mobile Phone
   • Car Expenses
   • Training and Courses
4. General Tax Deduction Rules
5. Tips for Record Keeping
6. Using GoTax for Your Tax Return
7. The End

Intro

Tax time can be a bit of a headache for tradies, but it doesn’t have to be. By knowing what you can claim and keeping accurate records, you can maximise your tax deductions and achieve a higher refund on your online income tax return. Let's help you navigate the process smoothly and ensure you claim everything you’re entitled to.

Why Keep Accurate Tax Records

The ATO has some pretty spiffy technology to monitor tax deductions and identify discrepancies. By keeping detailed and accurate records, you can substantiate your claims and avoid issues with your tax return. Accurate record-keeping ensures that you can claim the maximum tax deductions and receive the highest possible refund.

If you're a Tradie that has extensive receipts and many transactions throughout the year, or you're a small business tradie, then getting your record keeping right and consider an application like eCashbooks.com.  This will give you the invoicing power, and the simplicity of easy recording of transactions.

Employee Tradies only need the free Gotax App Deduction Grabber to keep track of their records.

What Tradies Can Claim

Tools and Equipment

Under $300:

You can claim the full amount in the year you bought it.

Over $300:

You can only claim a percentage over several years, that's called depreciation.

Simply enter your tool costs into the Gotax system and we'll work out the depreciation for you.

Example: If you buy a drill for $250, you can claim the full $250. If you buy a tool set for $1,200, you’ll need to claim it over a few years.

Protective Clothing

You can claim for protective clothing such as steel cap boots, hard hats, and high-vis wear.

Example: If you spend $150 on steel cap boots, you can claim that amount.

Sun Protection

If you work outside, you can claim sun hats, sunscreen, and sunglasses.

Example: If you purchase sunscreen for $30, you can claim that cost on your tax return.

Work Clothing

You can claim the cost of uniforms if they have your company’s logo or are specific to your job.

Example: If your employer requires you to wear shirts with the company logo and you spend $100 on them, you can claim that amount.

Laundry and Cleaning

You can claim the cost of washing your work clothes, but only if they are work-specific like uniforms or protective clothing.

Example: If you spend $5 a week washing your work clothes, that adds up to $260 a year, which you can claim.

Mobile Phone

You can claim a percentage of your mobile phone bill if you use it for work. Keep a record of work-related calls and texts.

Example: If 30% of your phone use is for work and your annual phone bill is $1,200, you can claim $360.

Car Expenses

You can claim car expenses if you use your car for work purposes, like traveling between job sites (but not commuting to and from home).

Example: If you drive 1,000 km for work and the rate is 85 cents per km, you can claim $850.

Training and Courses

If you pay for extra training related to your job, you can claim the cost of the course or workshop.

Example: If you pay for an excavation course for $500, you can claim that amount.

General Tax Deduction Rules

The ATO has three golden rules for claiming tax deductions:

1. You need to spend the money yourself and not be reimbursed.
2. It must be directly related to earning your income.
3. You need to have records to prove it (e.g., receipts and logbooks).

Tips for Record Keeping

• Categorise Expenses: Use categories such as tools, clothing, and travel to organize your receipts.
• Digital Storage: Take photos of your receipts, email them to yourself, and store them in a designated folder.
• GoTax Deduction Grabber App: Use this app to record your receipts and ensure you never lose a deduction.

Using GoTax for Your Tax Return

GoTax offers state-of-the-art e-tax software to guide you through the tax return process. With features like Live Chat support, Phoebe Tax Ai Q&A, so you can confidently complete your tax return online, knowing you have expert help available.

The End

Knowing what you can claim and keeping accurate records, you can maximise your tax deductions and achieve a higher refund.

Gotax

Australia's best kept secret for online tax returns.  \.