Can Tradies Claim a Ute on Their Tax Return?
Here’s the Truth
Published: July 2025
If you're a tradie, there's a good chance your ute is your pride and joy—and your mobile office.
But come tax time, the big question is: Can you claim your ute on your tax return?
Short answer: Yes, but there are rules (and no, you can’t just whack the whole thing into your deductions because you "use it for work sometimes").
Here’s exactly what you need to know to stay sweet with the ATO—and maximise your refund legally.
Can You Claim a Ute as a Tax Deduction?
Yes — but only if your ute is genuinely used for work purposes.
You can claim costs like:
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Fuel
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Registration
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Insurance
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Servicing and maintenance
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Depreciation (for the vehicle's cost)
If you bought a ute purely for work and you use it mainly for business, you're in a strong position.
Important:
The ATO expects you to prove how much you use your ute for work vs personal use. That’s where logbooks come into play.
What About Claiming the Full Purchase Price?
If you bought a brand new ute, you might be able to claim the cost—but how much depends on:
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The cost of the ute
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How much you use it for work
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Whether you claim it through depreciation or using temporary full expensing (for small businesses).
Not sure if you qualify for full expensing?
Check with a pro—or better yet, lodge with Gotax online here.
How to Work Out Your Ute Deductions Properly
There are two main ways:
1. Logbook Method
✅ Track every single trip you make over a 12-week period
✅ Record start and finish kilometres, where you drove, and why
✅ Work out the percentage of trips that are work-related
Example:
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If 70% of your ute use is for work, you can claim 70% of fuel, rego, insurance, etc.
Want an easy guide to keeping a proper logbook?
2. Cents per Kilometre Method
✅ If your ute is under one tonne (and not a "heavy vehicle"), you might be able to claim up to 5,000km per year at a set rate (currently 85c/km for 2024).
✅ You don't need receipts for fuel and running costs—but you DO need a reasonable estimate of your travel.
Warning:
If your ute is a "heavy vehicle" (more than one tonne payload), cents per kilometre claims don’t apply—you MUST use the logbook method.
Can You Claim Ute Accessories Too?
You might be able to claim work-related accessories like:
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Toolboxes
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Ladder racks
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Tow bars (for work trailers)
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Canopies (if used for securing work tools)
These are often treated like separate assets—meaning you either deduct them immediately (if under $300) or depreciate them.
Always keep your receipts—no receipt = no claim.
Common Mistakes When Claiming a Ute
❌ Claiming 100% work use when you also use it for footy runs, Bunnings trips, and school pickups.
❌ Forgetting to adjust your claims if your ute gets a lot of personal use.
❌ Thinking you can skip the logbook because "no one checks." (The ATO checks.)
Play it smart—only claim the work-related percentage and keep your logbook legit.
(We can help you work it out at Gotax:
https://www.gotax.com.au/guest-user)
Quick Recap: Can You Claim Your Ute?
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✅ Work use? Yes, deductions apply.
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✅ Keep a 12-week logbook or use the cents per km method (if eligible).
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✅ Keep receipts for fuel, servicing, rego, insurance, and accessories.
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✅ Don't overclaim—be honest about personal use.
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✅ Claiming the ute properly = bigger refund + no ATO dramas.
Need Help Claiming Your Ute the Right Way?
Gotax makes claiming ute deductions simple.
We guide you through each step online, ask the right questions, and make sure you claim everything you're legally entitled to—without risking ATO trouble.
Start your tradie tax return today here:
https://www.gotax.com.au/guest-user
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