Tradies Top 10 Deductions
One of the most common occupations we work with is tradies, so today we thought we would go through the list of the top 10 tradie deductions.
Car Usage
If you are using your car for work related purposes, you can claim a portion of your car usage.
For the travel to be deemed work related one of the following needs to apply:
Required to carry bulky tools or equipment, with no secure space to store them at work
Travel is not between home and work, unless carrying bulky tools
If you can claim your car usage, there are two methods to be able to claim a deduction. These are the cents per km method and the log book method. Each method has it’s own record keeping requirements and conditions.
2. Uniform
Protective clothing such as high vis gear and steel capped boots are tax deductible. Also sunglasses if required to work outside may also be claimable. Washing work related clothing can also be claimed at a rate of 50 cents per mixed load of washing.
3. Qualifications & Courses
School fees for apprenticeship are tax deductible including any travel costs for getting to school. Any course materials will also be claimable.
4. Tools
Tools under $300 and used for work related purposes are immediately deductible. Tools costing over $300 will need to be depreciated over a few years or added to the Low Value Pool.
5. Mobile
Work use of mobile will be claimable as a deduction. The ATO requires a 12 week log book to substantiate any work related percentage of mobile claims.
6. Union Fees
Union fees and any other association or memberships related to work are tax deductible.
7. Donations
Donations to a gift deductible recipient are tax deductible for donations over $2.
8. Accounting Fees
Accounting fees for preparation of your tax return are tax deductible.
9. Additional Superannuation Contributions
Additional personal super contributions are tax deductible if done correctly. There are required forms and conditions to meet for this to apply so talk to us if you are wanting to claim this deduction.
10. Income Protection Premiums
Income protection premiums not paid from superannuation can be claimed as a tax deduction. Any portion that relates to life insurance will not be able to be claimed.
If you are a tradie and would like a hand with your individual tax return or are looking to start a business, please get in touch with us today.
Disclaimer: Please be advised that the above information is a brief overview. This information should not be relied upon. No warranty express or implied is given in respect to the information provided and accordingly no responsibility is taken by Go Further Accounting for any loss resulting from any error or omission contained within this website. It is only intended to be general in nature and anyone intending to apply the information to their practical circumstances should seek professional advice to independently verify the information and how it applies to their specific circumstances.