Best Tax Deductions for Tradies

If you’re looking to maximise your tax refund this year, you’ve come to the right place. As a tradie, you have a unique set of expenses that can be claimed as deductions. Let’s break down some of the best tax deductions available to you, keeping it simple and instructional while identifying potential traps.

1. Tools and Equipment

Any tools or equipment costing less than $300 can be claimed as an immediate deduction. For items over $300, they need to be depreciated over their effective life. Keep all receipts and ensure the tools are used for work purposes.

Trap: Mixing personal and business use can complicate claims. Ensure tools are primarily for work.

Example: If you buy a drill for $250, you can claim the full amount as a deduction in the same financial year.

2. Vehicle Expenses

If you use your vehicle for work, you can claim deductions for fuel, maintenance, insurance, and depreciation. You can use either the cents per kilometre method (up to 5,000 km) or the logbook method.

Trap: Accurate records are essential. Without a logbook, you might miss out on significant deductions.

Example: If you drive 10,000 km for work and have a logbook, you can claim a proportion of your vehicle expenses based on the work-related use.

3. Work Clothing and Laundry

Claim deductions for protective clothing, uniforms with logos, and occupation-specific attire. You can also claim laundry expenses for these items.

Trap: Ordinary clothes, even if bought for work, are not deductible.

Example: If you purchase $500 worth of protective gear and spend $150 on laundering them, you can claim these costs.

4. Training and Education

If you undertake courses to maintain or improve your skills, these costs are deductible. This includes course fees, travel, and textbooks.

Trap: The courses must be directly related to your current job, not for a new career.

Example: Enrolling in a $1,000 advanced carpentry course to enhance your skills can be claimed.

5. Home Office Expenses

If you perform some tasks from home, you can claim a portion of your home office expenses, such as internet, phone, and electricity.

Trap: Only the work-related portion is deductible. Keep detailed records of your work hours at home.

Example: If your home office expenses total $1,200 and you use the space 50% of the time for work, you can claim $600.

Gotax Deduction Grabber App

To make tracking these deductions easier, download the Gotax Deduction Grabber App. It has all the log books and tax expense recording systems you need. Scan the QR code to download and simplify your tax filing process.

Gotax Tax Advice

Remember, the key to maximising your refund is diligent record-keeping and understanding what you can and can't claim. When in doubt, consult a Gotax professional to ensure you're getting the most out of your deductions.

Gotax..Maximise your Refund… 2024 Complete Return $55, Simple Return $15. Small Business $120, Rental $99+.

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