Tradie Tax Deductions Brisbane: What You Can Claim

Tradie tax deductions: work ute on a job site

13/11/2026 Amanda Palmer

When it comes to tradie tax deductions, every tradie has a mate at the pub who “claims everything.” That mate is usually one audit away from a very bad year.

The truth is, most tradies in Brisbane are under-claiming the things they’re entitled to and over-claiming the things that get flagged. This guide covers the tradie tax deductions that matter, where people trip up, and what records you actually need.

Tradie tax deductions for tools and equipment

Tools you use to earn your income are deductible. How you claim them depends on cost and whether you’re running a business.

Running your own business (sole trader, company or trust) with turnover under $10 million: the instant asset write-off lets you deduct the full cost of an eligible asset under $20,000 in the year it’s first used or installed ready for use. The limit is per asset, so two $12,000 items can both be written off.
Assets $20,000 or more go into the small business depreciation pool instead.
Working as an employee: tools under $300 can usually be claimed in full straight away. Over $300, you depreciate them over their effective life.

One thing to watch: the $20,000 limit is tested on the full cost of the asset, not just your business-use portion. A $25,000 item used 60% for work still goes in the pool.

The Federal Government announced in the May 2026 Budget that the $20,000 limit would become permanent from 1 July 2026. Check with us before you make a big purchase so you know exactly which limit applies to you.

The ute (and why it’s different from a car)

This is where tradies either save a lot or get burnt.

If your ute is designed to carry one tonne or more, or nine or more passengers, the ATO doesn’t treat it as a “car.” That means:

the car limit doesn’t cap your depreciation
you don’t use the logbook or cents per kilometre methods
you claim the actual costs (fuel, rego, insurance, servicing, depreciation, interest) for the work-use portion

Sounds great. The catch is that private use still isn’t deductible. Weekend trips to the tip, school drop-offs and camping at Noosa are private. You need records showing how you work out your business percentage, and a logbook is still the easiest way to prove it.

If you’re operating through a company and the ute is available for private use, fringe benefits tax can come into play too. There is an exemption for work vehicles where private use is minor, but “minor” has a specific meaning. Ask before you assume.

Travel: the one everyone gets wrong

Driving from home to your regular workplace is private travel. Not deductible. Even if you’re a tradie.

What you can claim:

travel between job sites during the day
trips to the supplier to pick up materials
home to site travel if you genuinely need to carry bulky tools or equipment (think ladders, generators, a trailer full of gear) and there’s no secure place to store them on site
travel where your home is your base of operations and you’re heading out to clients

“I had my phone and a hammer in the ute” doesn’t count as bulky tools. The ATO has seen that one before.

Tradie tax deductions for clothing and PPE

You can claim:

steel cap boots, hi-vis and other protective gear
branded uniforms with your business logo
sunscreen, sunglasses and hats if you work outdoors
the cost of laundering protective or branded clothing

You can’t claim plain work shorts, jeans, black T-shirts or the hoodie you also wear to the footy. If you could wear it out on a Saturday, it’s private.

Phone, internet and admin

Your phone is probably your office. You can claim the business portion of your phone and data, but you need to work out a fair percentage. A four-week diary of your typical usage is the standard way to back it up.

Other admin deductions tradies often forget:

accounting and bookkeeping software (Xero, MYOB, job management apps)
licence renewals, such as your QBCC licence renewal (the very first licence isn’t deductible)
union fees and industry association memberships
training that maintains or improves skills in your current trade
tax agent fees from last year

Records that back up your tradie tax deductions

The ATO doesn’t care what you spent. It cares what you can prove. Keep:

receipts or invoices for everything (a photo in your bookkeeping app is fine)
a logbook for your vehicle
a usage diary for your phone
bank statements that match your claims

If your receipts live in the console of the ute until June, you’re leaving money on the table and creating risk at the same time. Getting your bookkeeping sorted weekly beats a shoebox scramble every time.

The honest bit

Tradies work hard for their money, and you should claim every dollar you’re entitled to. You just shouldn’t claim the ones you’re not. Getting your tradie tax deductions right is usually a bit of planning and decent records, not a clever trick.

We look after trades businesses across Brisbane and we’ll tell you straight what you can claim, what you can’t, and how to set things up so tax time isn’t a horror show. Book a time with us and we’ll take a look.