Tax Deductions for Tradesperson (Electrician, Plumber, etc.)
If you're working as a tradesperson (electrician, plumber, etc.), there are 30 categories of work-related expenses you may be able to claim. Below you'll find every deduction the ATO lists for your occupation — in plain English.
This guide covers 30 deduction categories with 265+ specific items, plus income types and record-keeping requirements — all sourced from the ATO.
Deduction Categories
30
Specific Items
265
Income Types
0
Work-Related Deductions (30)
Amounts you do and don't include
- salary and wages, including cash or bonus payments
- compensation and insurance payments – for example, payments made under an income protection insurance policy to replace salary and wages.
- You must include all the income you receive as a tradesperson during the income year in your tax return, this includes:
- Don't include as income any reimbursements you receive.
- Your income statement or a payment summary will show all your salary, wages and allowances for the income year.
Allowances
- to help you pay for a work expense – for example, tools and equipment
- as compensation for an aspect of your work such as working conditions or industry peculiarities – for example, handling chemicals
- as an amount for having special duties, skills or qualifications – for example, first aid qualifications.
Allowances not on your income statement or payment summary
- don't include it as income in your tax return
- can't claim any deductions for the work expenses the allowance covers.
- include the allowance as income in your tax return
- include a claim for the work expenses you incur in your tax return
- must have records of your expenses.
Allowances and claiming a deduction
- The following table sets out allowances you may receive and when you can claim a deduction.
- Examples of allowance types
- Deduction (Yes or No)
- Compensation for an aspect of your work that is unpleasant, special or dangerous or for industry peculiarities
- Underground allowance
- Electrician's licence allowance
- Multistorey allowance
- Laser operation allowance
- Carpenter-diver allowance
- Air-conditioning industry and refrigeration industry allowances
- In charge of plant allowances
- Computer quantities allowance
- Scaffolding and rigging certificate
- Leading hand allowance
- Income tax applies to these allowances but you can't claim a deduction. These allowances don't help you pay for deductible work-related expenses
- An amount for certain expenses
- Award transport payment (motor vehicle allowance, fares allowance and other travelling time entitlements)
- Overtime meal allowance
- If you incur deductible expenses
- An amount for special skills
- A first aid certificate
- Roger is a carpenter. Roger's employer doesn't provide him with tools but pays Roger a tool allowance of $1,130 per year.
- During the income year, Roger buys a new circular saw for $729. The tool allowance is shown on Roger's income statement at the end of the income year.
- Roger must include the tool allowance as income in his tax return.
- Roger can claim a deduction for the decline in value of his circular saw.
- Maris works as a concreter. When Maris works in the rain, she receives an allowance from her employer.
- At the end of the income year, Maris's employer includes the allowance on her income statement.
- Maris must include the allowance as income in her tax return.
- Maris can't claim a deduction because she doesn't incur any deductible expenditure. The allowance compensates Maris for working in unpleasant conditions. It is not to help pay for expenses Maris might incur.
Reimbursements
- you don't include the reimbursement as income in your tax return
- you can't claim a deduction for them.
- Deductions for work expenses
- Record keeping for work expenses
Award transport payments (fares allowance)
- Allowances you receive from your employer for transport or car expenses that are paid under an award must be included in your tax return. These allowances are assessable income.
- You can claim a deduction for expenses covered by award transport payments , if the expenses are for work-related travel, and you have actually spent the money.
- You will need to be able to show how you work out you claim if we request this information. You don’t need written evidence if your claim is less than the amount in the award as at 29 October 1986. If you're unsure of this amount, your union or employer can tell you.
Example: deduction allowable more than Award amount
- Chandra is a house painter. He uses his car to carry his bulky tools and equipment to and from work.
- Chandra's employer pays him an award transport (fares) allowance of $17.88 per day. The award rate as at 29 October 1986 was $7.60 per day.
- The allowance is shown on Chandra's income statement. Chandra must declare the allowance as income in his tax return.
- Chandra can claim a deduction for the transport costs he incurs travelling from home to work sites, between work sites and from work sites to his home.
- If Chandra claims a deduction of more than $7.60 per day, he must substantiate the whole of his claim, not just the excess over $7.60 per day.
Example: no deduction for transport expenses
- Michael is a carpenter employed permanently at a factory that manufactures kitchens. He does not transport bulky tools or equipment to work. Even though Michael is not required to leave the factory at any time in the course of his working day, his employer pays him a fares allowance. The allowance is shown on Michael's income statement at the end of the income year.
- Michael must include the allowance as income but can't claim a deduction for the cost of travel to and from work. It is a private expense.
Car expenses
- live a long way from your usual or regular workplace
- have to work outside normal business hours (for example, weekend or early morning shifts).
- the tools or equipment are essential to perform your employment duties
- the tools or equipment are bulky, meaning that because of the size and weight, they are awkward to transport
- they can only be transported conveniently using a motor vehicle
- there is no secure storage for such items at the workplace.
- directly between separate jobs on the same day (provided neither of the workplaces is your home) – for example, travelling from your first job as an electrician to your second job as a TAFE teacher
- to and from an alternative workplace for the same employer on the same day – for example, driving between separate work sites for your employer
- from home directly to an alternative workplace – for example, travelling from home to meet a client at their premises which is not your regular work location.
- own the car
- lease the car (directly from the finance company)
- hire the car under a purchase agreement (with the car dealership or a finance company).
- vehicle with a carrying capacity of one tonne or more (such as a ute)
- vehicle that can transport 9 passengers or more (such as a minibus).
Example: transporting bulky tools and equipment
- his tools and equipment, including the extension ladders are essential to perform his work duties
- the extension ladders and his other tools and equipment are bulky
- there is no secure storage at his workplace.
Example: storage is available
- Claudia works as a plasterer on a large construction site that she drives to every workday. The construction site is fenced off and access is only granted by security stationed at the entrance. Each worker is provided with their own tool locker with a combination lock.
- To perform her duties as a plasterer she requires several tools, that combined are large and heavy. The tool locker provided has plenty of space for Claudia to store her tools, however she chooses to take her tools home every day.
- Although her tools are bulky, Claudia has a secure place to store them at the construction site. It is her personal choice to transport them between home and work each day.
- Claudia can't a deduction for the cost she incurs to travel between home and work. The expenses are private.
Example: tools and transport provided
- Paul's employer provides him with a van which is fully equipped with the materials and tools he needs to carry out his duties. Paul uses his own car to travel to his employer's head office where he picks up the work van. He then drives to his first job, in the van provided by his employer.
- Paul can't claim a deduction for the cost of using his own car to travel between his home and head office (his regular place of work) each day. These are private expenses.
Example: travelling between workplaces
- Jack and Bill are carpenters employed to construct roof trusses. They work on their designs from their employer's factory and then travel to install the trusses on location in the client's home.
- Jack and Bill can claim a deduction for the cost of travel between the factory and their client's houses.
- They can't claim a deduction for travel between their home and the factory as this travel is to and from their regular workplace. The expenses are private.
Example: different worksites each day
- Hasan is a plumber and is required to travel to several worksites each day to provide quotes to clients and work on various jobs.
- Hasan can claim a deduction for the car expenses he incurs travelling between his home and work and between worksites because he has no fixed place of work and continually travels from one work site another before returning home at the end of his working day.
Example: shifting workplaces
- Sidney is an electrician and uses her own vehicle to travel to several sites each day. She carries a large extension ladder on her roof rack, a toolbox, reels of cable and boxes of switches to perform her work duties.
- Sidney can claim a deduction for her vehicle expenses because she has shifting places of work. She can also claim a deduction because she transports bulky tools and equipment between her home and work sites.
Example: vehicle other than a car
- Amal owns a vehicle with a gross vehicle mass of 2,402 kg and a kerb weight of 1,040 kg.
- The payload or carrying capacity weight of Amal’s vehicle is as follows:
- 2,402 kg − 1,040 kg = 1,362 kg
- As the vehicle’s payload or carrying capacity is greater than 1,000 kg (or one tonne), Amal’s vehicle is considered to be a vehicle other than a car.
- Amal can't claim using the logbook or cents per kilometre method. However, he can claim the work-related portion of his actual vehicle expenses.
Child care
- You can't claim a deduction for the cost of child care (including school holidays and before and after school care) when you're working. It's a private expense, and the expenses have no direct connection to earning your income.
Clothing and uniform expenses (including footwear)
- protective clothing – clothing with protective features and functions to protect you from specific risks of injury or illness at work. For example, steel-capped boots, fire-resistant clothing, or overalls that protect conventional clothing. Conventional clothes you wear at work are not regarded as protective clothing if they lack protective qualities designed for the risks of your work. This includes jeans, drill shirts, shorts, trousers, socks, closed shoes.
- occupation-specific – clothing that distinctly identifies you as a person with a particular profession, trade or occupation. For example, a judge's robes or a chef's chequered pants. Items traditionally worn in a profession are not occupation-specific where the clothing is worn by multiple professions.
- a compulsory uniform – clothing that your employer strictly and consistently enforces you wear by workplace agreement or policy and distinctly identifies either you as an employee working for a particular employer
- the products or services your employer provides
- a non-compulsory uniform – a uniform that is not compulsory to wear and that your employer registers on the Register of Approved Occupational Clothing.
Example: conventional clothing
- Leila, a trainee electrician, works on a building site. She wears jeans with t-shirts or long sleeve shirts at work as they are comfortable. While the jeans and shirts afford Leila some protection from skin abrasions, when handling tools and materials, they provide only limited protection from injury.
- The jeans and shirts worn by Leila to work are commonly worn as conventional clothing and do not have protective features and functions designed to protect the wearer or cope with rigorous working conditions.
- Leila can't claim a deduction for the cost of purchasing these items because they there are conventional clothing.
Example: protective clothing
- Rafael is a painter and wears overalls when painting his client's homes. The overalls protect his conventional clothing from damage when performing his work duties.
- The protective nature of the overalls means that Rafael can claim the cost of purchasing them.
Drivers licence
- You can't claim a deduction for the cost to get or renew your drivers licence , even if you must have it as a condition of employment. This is a private expense.
- You can claim a deduction for additional costs you incur to get a special licence or condition on your licence to perform your work duties. For example, the cost you incur to get a heavy vehicle permit.
Fines and penalties
- You can't claim a deduction for any fines or penalties you get when you travel to work or during work. Fines may include parking and speeding fines or penalties. For example, a fine you receive for speeding on your way to work.
First aid courses
- a designated first aid person
- need to complete a first aid training course to assist in emergency work situations.
- Tradesperson expenses G–O
- Tradesperson expenses P–S
- Tradesperson expenses T–W
Glasses, contact lenses and anti-glare glasses
- You can't claim a deduction for prescription glasses or contact lenses , even if you need to wear them while working these are private expenses.
- You can claim a deduction for the cost of protective glasses if you wear them to reduce the real and likely risk of illness or injury while working. Protective glasses include anti-glare or photochromatic glasses, sunglasses , safety glasses or goggles.
- You can only claim a deduction for the work-related use of the item.
Example: claiming safety glasses
- Esme is an electrician. She must wear safety glasses when she is working so that her eyes are provided from electric arcs, flash burns and flying debris.
- Esme buys a pair of safety glasses for $165 which meet the required safety standards. The safety glasses are only used for work purposes
- Esme can claim a deduction of $165 for the safety glasses as they protect her eyes from the real and likely risk of injury while she is working.
Insurance of tools and equipment
- You can claim a deduction for the cost to insure your tools and equipment to the extent that you use them for work-related purposes.
Laundry and maintenance
- protective (for example, a hi-vis jacket)
- occupation specific and not a conventional, everyday piece of clothing such as jeans or general business attire
- a uniform either non-compulsory and registered by your employer on the Register of Approved Occupational Clothing or compulsory.
- $1 per load if it only contains clothing you wear at work from one of the categories above
- 50c per load if you mix personal items of clothing with work clothing from one of the categories above.
Example: laundry expenses
- Dante is employed as a commercial painter. His employer provides him with a compulsory uniform that has the company name and logo embroidered on it.
- He washes and dries his uniforms in a separate load of washing 3 times a week. Dante works 40 weeks during the year. His claim of $120 for laundry expenses is worked out as follows:
- Number of claimable laundry loads per week x number of weeks = total number of claimable laundry loads
- 3 × 40 = 120
- Total number of claimable laundry loads x reasonable cost per load = total claim amount
- 120 × $1 = $120
- As his total claim for laundry expenses is under $150, Dante doesn't have to keep written evidence of his laundry expenses. Although Dante doesn't require evidence to prove his claim for laundry, if asked, he will still be required to explain how he calculated his claim.
Licences, permits and cards
- You can't claim the cost to your initial licence, regulatory permit, cards or certificates in order to get a job. For example, a builder's licence.
- You can claim a deduction for the additional costs you incur to renew your licence, regulatory permit, card or certificate to continue to perform your work duties. For example, if you need to have a builder's licence to get your job, you can’t claim the initial cost of getting it. However, you can claim the cost to renew it during the period you are working.
Meal and snack expenses
- overtime meal expenses , but only if you buy and eat the meal while you are performing overtime and you receive an overtime meal allowance under an industrial law, award or agreement
- the cost of meals you incur when you are travelling overnight for the purpose of carrying out your employment duties ( travel expenses ).
- You can't claim for the cost of food, drink or snacks you consume during your normal working hours, even if you receive a meal allowance. These are private expenses.
Music streaming services, CDs, audio books or podcasts
- You can't claim a deduction for the cost of music streaming services, CDs, audio books, podcasts or devices that you use at work. Even if they're used to keep you motivated or occupied at work, these items aren't essential to earning your income. They are private expenses.
Newspapers and other news services, magazines and professional publications
- a direct connection between your income earning activities and the content
- the content is specific to your employment and is not general in nature.
- The cost of newspapers, other news services and magazines are generally private expenses and not deductible.
- You can claim a deduction for the cost of buying or subscribing to a professional publication, newspaper, news service or magazine if you can show:
- If you use the publication for work and private purposes, you can only claim the portion related to your work-related use.
Overtime meal expenses
- you receive an overtime meal allowance under an industrial law, award or agreement
- the allowance is on your income statement or payment summary as a separate allowance
- you include the allowance in your tax return as income.
- up to the reasonable amount, you don't have to get and keep receipts
- more than the reasonable amount, you must get and keep receipts for all your expenses.
Example: overtime meal expenses
- Tradesperson expenses A–F
- Tradesperson expenses P–S
- Tradesperson expenses T–W
Parking fees and tolls
- You can't claim a deduction for parking at or near a regular place of work. You also can't claim a deduction for tolls you incur for trips between your home and regular place of work. These are private expenses.
- You can claim a deduction for parking fees and tolls on work-related trips.
Example: parking fees
- Alisa is an industrial mechanic and drives her own car to work each day and parks in the secure parking lot next to the factory where she works.
- Alisa can't claim the cost she incurs for parking at her regular place of work.
Phone, data and internet expenses
- provides you with a phone for work and pays for the usage
- reimburses you for the costs you incur.
- Mobile phone, mobile internet and other devices
- Home phone and internet expenses
Example: work-related phone expenses
- Harris is a roofer and he uses his personal mobile phone for work purposes (mostly outgoing phone calls). He is on a plan of $29 a month.
- He receives an itemised bill from his phone provider each month which includes details of his individual phone calls.
- At least once a year, Harris prints out his monthly bill and highlights his work-related phone calls. He also makes notes on the itemised bill about who he has phoned for example, his manager and clients.
- Of the 150 calls he made in a 4-week period, Harris works out 45 (30%) of the phone calls are for work. He applies that percentage to his monthly plan amount ($29 a month).
- Harris calculates his phone calls for work purposes as follows:
- Total work phone calls ÷ total number of phone calls = work use percentage for phone calls
- 45 ÷ 150 = 0.30 (that is 30%)
- Harris can claim 30% of the total bill of $29 for each month for work purposes, that is:
- $29 × 0.30 = $8.70
- Since Harris was only at work for 48 weeks of the year (11 months), he calculates his work-related mobile phone expense deduction as follows:
- 11 months × $8.70 = $95.70
Protective equipment and items
- supplies the protective items
- reimburses you for the cost you incur to buy protective items.
- You can claim a deduction for the cost of protective items if you wear them to protect yourself from the real and likely risk of injury or illness in your work environment or while performing your work duties.
- To be considered protective, the equipment must provide a sufficient degree of protection against the risks of illness or injury you are exposed to in carrying out your work duties. Protective items can include safety glasses, helmets and breathing masks.
- For example, a glazier can claim a deduction for the cost of steel-capped boots, gloves and safety glasses.
- You can't claim a deduction if your employer:
Example: protective items
- Winnie works as a welder. She is required to wear a welding helmet, gloves and fire-retardant hood when performing her work duties. If Winnie doesn't wear these items she is at risk of being injured.
- The items are not provided by Winnie's employer so she buys the items herself. Each item cost less than $300.
- There is a connection between the expense she incurred on the welding helmet, gloves and fire-retardant hood and the protection the items provide for her whilst she is working.
- Winnie can claim a deduction for the cost of buying her welding helmet, gloves and fire-retardant hood in the year of income she buys them. If any of the items cost more than $300, Winnie would only be able to claim a deduction for the decline in value over the effective life of that item.
Repairs to tools and equipment
- You can claim a deduction for repairs to tools and equipment you use for work. If you also use them for private purposes, you can only claim an amount for your work-related use.
Self-education expenses
- maintains or improves the skills and knowledge you need for your current duties
- results in or is likely to result in an increase in your income from your current employment.
- doesn't have a connection with your current employment
- only relates in a general way to your current employment
- enables you to get employment or change employment.
- travel between your home and the place of education and then back home
- the first leg of the trip when you travel from home to the place of education and then on to work
- when you travel from work to a place of education and then home
- travel between work and the place of education and then back to work.
- Higher Education Loan Program (HELP) (FEE-HELP and HECS-HELP)
- VET Student Loans (VSL)
- Australian Apprenticeship Support Loans (AASL)
- Student Financial Supplement Scheme (SFSS)
- Student Start-up Loan (SSL).
Example: study isn't relevant to current duties
- David is studying a Certificate III in Carpentry while working as a timber salesperson. His duties as a salesman include finding out what clients need, quoting on timber supplies, organising payment and deliver of timber.
- The Certificate III in Carpentry will provide David with the knowledge and skills to construct, install, finish and repair structures, construct frames and walls and ceilings and construct pitched and advanced roofs and eaves.
- After studying for 12 months, David's employer offers him a new role assembling timber frames on an understanding that he will continue his studies. His role requires him to accurately measure, cut and assemble timber components, set up equipment, load and unload materials and to adhere to drawings and specifications under the supervision of a qualified carpenter.
- David can't claim deductions for his study expenses while employed as a salesperson. The Certificate III course doesn't improve the skills and knowledge David requires to be a timber salesman.
- When David moves into his role assembling timber frames, David can claim deductions for his study expenses.
Seminars, conferences and training courses
- You can claim a deduction for the cost of seminars, conferences and training courses that relate to your work as a tradesperson or apprentice.
- The costs you can claim includes fares to attend the venue where the seminar, conference or training course is held and registration costs. If you need to travel and stay away from home overnight to attend such an event, you can also claim the cost of accommodation and meals.
- You may not be able to claim all of your expenses if attending a seminar, conference or training course is for both work-related and private purposes. If the private purpose is incidental, such as a catered lunch or a reception for delegates, you can still claim all your expenses. However, if the main purpose is not work-related, such as attending a conference while on a holiday, you can only claim the direct costs. Direct costs include the registration costs.
- Where you have a dual purpose for attending the seminar, conference or training course you can only claim the work-related portion. For example, you add a holiday of one week to a training course that runs for one week.
Example: conference expenses reimbursed
- Harriette is a qualified electrician. Her employer intermittently requires her to attend conferences in order to keep up to date with developments in her field. Harriette’s employer pays for her travel, accommodation, meals and incidental expenses when attending work-related conferences.
- Harriette can't claim a deduction for any of these expenses as she didn't incur the costs.
Example: deductible self-education expenses
- Rohan is a carpenter. His employer sends him to a trade show to showcase the company’s new range of cabinetry. His employer pays for his flights and accommodation. However, Rohan was required to pay for his own meals whilst attending the trade show.
- Rohan can't claim the cost of his flights and accommodation as he has not incurred these expenses. He can however claim a deduction for the expenses he incurs on meals, whilst attending the trade show.
Stationery
- You can claim a deduction for the cost of logbooks, diaries, pens and notepads that you buy and use for work-related purposes.
Sunglasses, sunhats and sunscreen
- must work outside in the sun for prolonged periods
- use these items to protect you from the real and likely risk of illness or injury while at work.
- You can claim a deduction for the work-related use of sunglasses, sunhats and sunscreen lotions if you:
- This includes prescription sunglasses and anti-glare glasses.
- You can only claim a deduction for the work-related use of the products if you also wear them for private purposes.
Example: claiming sunhat and sunscreen
- Tradesperson expenses A–F
- Tradesperson expenses G–O
- Tradesperson expenses T–W
Tools and equipment
- you use it mainly to produce non-business assessable income
- it's not part of a set that together cost more than $300
- it's not identical, or substantially identical to, other items that together cost more than $300.
- cost more than $300
- is part of a set that together cost more than $300
- is identical, or substantially identical to, other items that together cost more than $300.
Example: decline in value (no immediate deduction)
- Anna needed a new set of 16 spanners for work. She couldn't afford to buy the complete set for $352, so she bought them individually throughout the income year.
- Although they only cost $22 each, Anna can't claim an immediate deduction for each of the spanners. This is because they are part of a set she bought in the income year that cost more than $300.
- Anna can claim a deduction for the decline in value over the effective life of the set, which cost $352.
- If in a following income year, Anna breaks one of the spanners and has to buy a replacement, she'll be able to claim an immediate deduction for the replacement because it will cost $300 or less and won’t be part of a set she bought in that year that cost more than $300.
Example: effective life of an asset
- Tal buys an electric hand tool on 5 September for $1,500. He only uses the tool for work purposes.
- He checks the Commissioner's determination of the effective life of depreciating assets. The determination says the effective life of electric hand tools is 5 years.
- Tal works out the deduction for the decline in value of his tool set using the prime cost method, as follows:
- (Asset cost × (days held ÷ 365) × (100% ÷ effective life))
- If Tal used the electric hand tool for private purposes as well, he would have to multiply the amount calculated using the formula above by the work-related use percentage.
- Tal works out that he has held the tool for 300 days and calculates his deduction for the decline in value as:
- $1,500 × (300÷ 365) × (100% ÷ 5 years) = $246
- Tal can therefore claim $246 for the decline in value of his tool set in the first year. Using the same method, he will also be able to claim $300 per year in the following 4 years and $54 in the final (sixth) year.
Travel expenses
- travel for work
- sleep away from your home overnight in the course of performing your employment duties.
- you slept in accommodation your employer provides
- you eat meals your employer provides
- your employer or a third party reimburses you for any costs you incur.
- you were away overnight
- you spent the money
- the travel directly relates to earning your employment income
- how you work out your claim.
- the travel allowance is not on your income statement or payment summary
- the travel allowance doesn't exceed the Commissioner's reasonable amount (the reasonable amount is the amount we set each year for determining whether an exception from keeping written evidence applies for accommodation, meal and incidental expenses which are covered by a travel allowance)
- you spent the whole allowance on deductible accommodation, meal and incidental expenses (if applicable).
- you receive a travel allowance from your employer for the expenses
- your deduction is less than the Commissioner’s reasonable amount.
Example: living at a location
- Joe is a carpenter. He lives in the city with his family and applies for a job to work on a large construction project near a country town for 12 months. Joe can't claim a deduction for his accommodation and meal costs while living away for work. The expenses are private living expenses. Joe has chosen to sleep near his workplace rather than returning home because of his personal circumstances, that is, he lives a long way from where he works.
Example: reasonable allowance amount
- it isn't shown on his income statement
- it's less than the reasonable allowance amount
- he spends it all to cover his travel expenses.
Union and professional association fees
- You can claim a deduction for union and professional association fees you pay. You can use your income statement or payment summary as evidence of the amount you pay if it's shown on there.
Working from home expenses
- use one of the methods set out by us to calculate your deduction
- keep the records required for the method you choose.
- coffee, tea, milk and other general household items consumed while working from home which your employer may provide you at work
- costs that relate to your children's education, for example, iPads, desks, subscriptions for online learning
- expenses your employer pays for or reimburses you for, including setting up your home office
- the decline in value of items provided to you by your employer – for example, a laptop or a phone.
- PS LA 2001/6 Verification approaches for electronic device usage expenses
- TR 93/30 Income tax: deductions for home office expenses
- PCG 2023/1 Claiming a deduction for additional running expenses incurred while working from home - ATO compliance approach
- Tradesperson expenses A–F
- Tradesperson expenses G–O
- Tradesperson expenses P–S
- Income and allowances
- Record keeping for work expenses
✅ Deduction Checklist for Tradesperson (Electrician, Plumber, etc.)
Use this checklist at tax time to make sure you don't miss any deductions.
💡 Practical Tips
📱 Use the myDeductions Tool
Download the ATO app and use myDeductions to record expenses throughout the year. Much easier than collecting receipts at tax time.
🧾 The $300 Rule
You can claim up to $300 in work-related expenses without receipts — but you must have actually spent the money and it must be related to earning your income.
🏠 Working From Home
If you work from home, you can claim 67 cents per hour (revised fixed rate) for running expenses like electricity, internet, and phone. Keep a record of hours worked.
🚗 Car Expenses
Choose between the cents per km method (85c/km, max 5,000 km) or logbook method (actual expenses × business use %). A 12-week logbook is valid for 5 years if your circumstances don't change.
⚠️ Common Mistakes & ATO Audit Flags
The ATO actively audits tradesperson (electrician, plumber, etc.) claims. Avoid these common errors and know what triggers extra scrutiny.
❌ Common Mistakes
Claiming expenses reimbursed by your employer
Fix: If your employer already paid you back, you can't also claim a deduction. Check your pay slips.
Not keeping receipts for claims over $300
Fix: You must have records for all deductions over $300. Bank/credit card statements alone aren't enough — keep the actual receipts.
Claiming private expenses as work-related
Fix: Only expenses directly related to earning your income are deductible. Personal items worn or used at work don't count.
🔍 ATO Audit Flags
Deductions significantly above average for your occupation
The ATO publishes benchmarks. If your claims are well above the norm, expect a 'please explain'.
Claiming the same expense twice (e.g., WFH and office supplies)
The ATO's data matching catches double-dips. Make sure each expense is claimed once.
Data sourced from the Australian Taxation Office — Tradesperson (Electrician, Plumber, etc.) Guide. Last updated: 2026-03-14.