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Tax Tips for Mechanics

Tax Tips for Mechanics – Maximise Your Refund 

You keep cars running, but who’s keeping your tax refund firing on all cylinders? That’s where GoTax comes in.

Mechanics have some of the best tax deductions in Australia — from tools and uniforms to work travel, training, and even protective sunnies. But the road is full of potholes: common traps, missed opportunities, and ATO no-nos.

Here’s your complete guide to mechanic tax deductions, tax refund tips, and the top 10 Q&As you’ve been asking.


Mechanics Tax Returns

Common Tax Deductions for Mechanics

1. Uniforms & Protective Gear

You can claim:

  • Logoed uniforms provided by your employer

  • Overalls, heavy-duty shorts and trousers

  • Steel cap boots

  • PPE like gloves, goggles, sun hats, and sunglasses

Trap: Ordinary jeans, sneakers, or T-shirts? Not deductible — even if you ruin them with grease.


2. Tools & Equipment

Mechanics spend big on tools, and the ATO recognises it. You can claim:

  • Hand tools (spanners, screwdrivers, hammers)

  • Power tools (drills, grinders, impact guns)

  • Diagnostic equipment

Claiming rules:

  • Under $300: Claim instantly

  • Over $300: Depreciate over a few years (we do the maths)

Missed opportunity: Don’t forget consumables like cleaning cloths, lubricants, and toolboxes — they count too.


3. Motor Vehicle Expenses

If you use your own car for work tasks like collecting parts, travelling to a different site, or training courses, you can claim:

  • Cents-per-km method (up to 5,000 km)

  • Logbook method for fuel, rego, insurance, servicing, tyres, and depreciation

Trap: Driving from home to your regular garage isn’t deductible. That’s called “commuting” — and the ATO says nope.


4. Training & Courses

To keep your skills sharp:

  • Mechanical upskilling courses

  • Safety training (first aid, WHS)

  • Manufacturer training (e.g. new EV or hybrid systems)

Travel, accommodation, and meals can also be claimed if you need to stay overnight.


5. Work-Related Expenses

You may also be able to claim:

  • Workplace licences and registrations

  • Union fees

  • Journals, mechanical manuals, and subscriptions

  • Stationery and diaries

  • Mobile phone/internet (for work calls, rostering apps, or training)


Common Traps & Missed Opportunities

  • Trap: Claiming your home-to-work trip — never deductible.

  • Trap: Forgetting receipts. The ATO doesn’t care how greasy your hands were — no receipt, no claim.

  • Missed Opportunity: Claiming small consumables like rags, grease, or safety glasses.

  • Missed Opportunity: Tax-deductible super contributions — boost your retirement and shrink your tax bill.

  • Trap: Claiming personal clothes like jeans as “workwear.” Not deductible.


Top 10 Q&As for Mechanics

Q1: Can I claim new tools I buy for work?

Yes — under $300 outright, over $300 depreciated.
Snippet: Tools under $300 are fully deductible; over $300 are claimed over time.

Q2: Are steel cap boots deductible?

Yes, if required for your role.
Snippet: Protective clothing like steel cap boots is fully deductible.

Q3: Can I claim sunglasses?

Yes, if you work outdoors and they protect against sun.
Snippet: Protective sunnies used at work are deductible.

Q4: Can I claim laundry for my uniform?

Yes, if it’s logoed or protective.
Snippet: Washing and dry cleaning of logoed uniforms is deductible.

Q5: Can I claim my fuel driving to the workshop?

No, home-to-work travel is private.
Snippet: Daily commute fuel costs are not deductible.

Q6: What about collecting parts for work?

Yes, travel to collect supplies or visit another site is deductible.
Snippet: Work trips to collect parts or travel between sites are deductible.

Q7: Can I claim my phone bill?

Yes, for work use only — keep a one-month logbook.
Snippet: Work portion of phone and internet costs is deductible.

Q8: Are union fees deductible?

Yes, 100%.
Snippet: Union and association fees are fully tax deductible.

Q9: Can I claim training for electric vehicles?

Yes, if it improves your current role.
Snippet: Training related to your current job is deductible.

Q10: Can I claim GoTax fees?

Yes, next year.
Snippet: Tax agent fees are deductible on your following year’s return.


Related Blogs for Mechanics


Final Tax Tips for Mechanics

  • Keep a logbook for travel and phone use.

  • Save every receipt — no matter how oily.

  • Don’t miss small consumables — they add up.

  • Use the Deduction Grabber in GoTax to keep your records tight.

What Next?

Sign up to GoTax and not only get your online tax return done, you can also ask as many questions as you like and get informed answers. You have access to the equivalent of a Tax Einstein — that is our very own D.e.r.e.k — as well as the best credentialed Tax Accountants around.

Start your Online Tax Return today