Tools, protective gear and the driving between sites are the big three for tradies. Here's what the ATO actually lets you claim, and the ute rule that catches plenty of people out.
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By the Nomo team · Last reviewed 24 September 2026
This guide covers the rules every trade shares. For the detail that's specific to your trade:
Tools you buy for work are deductible, and so are repairs and insurance on them. Anything costing $300 or less comes off in full the year you buy it. Over $300, you claim the decline in value over several years. A set counts as one item, so a $500 socket set is a $500 item. You can't claim anything your employer supplied or paid for.
More detail in tools and equipment.
If your vehicle is built to carry a load of one tonne or more, or nine or more passengers, it isn't a "car" for tax purposes, so you can't use the cents per km method or the logbook method. Plenty of dual cab utes sit close to that line, so check the carrying capacity in the manufacturer's specs.
For those vehicles you claim the actual work-related running costs instead, which means keeping fuel, servicing and insurance receipts and a record of how much you use it for work. Under the tonne the normal rules apply: cents per km up to 5,000 work km, or a logbook for bigger claims. The ATO explains it under vehicles that aren't a car.
The regular run from home to your usual site is private, no matter how early the start. What counts:
Two exceptions can make the home trip claimable. Itinerant work, where you have no fixed site and travel between jobs all day. And carrying bulky tools, but only if the gear is essential, genuinely awkward to move without a vehicle, and there's nowhere secure to leave it on site. Worked examples in driving between job sites.
Most tradie claims live or die on receipts. The Bunnings run for a new blade, the boots that wore out in March, the drill that died on a Friday. If you claim more than the $1,000 standard deduction, you need written evidence for all of it, and a faded docket in the glovebox doesn't count for much.
See the receipt tracker for how Nomo keeps them.
Protective clothing is claimable because it protects you: steel caps, safety glasses, high-vis, fire-resistant gear. Ordinary work clothes aren't, even if the boss insists on them.
Overtime meals count only when your employer paid you an overtime meal allowance under an award or agreement and that allowance is in your income. Phone and internet are claimable for the work-related share, with records showing the split.
Labourers, scaffolders, plant operators and site supervisors have their own ATO guide. See construction worker tax deductions.
From 2026–27, employees can take a standard deduction of up to $1,000 for work expenses with no receipts. The work expenses you claim reduce it dollar for dollar, so you get whichever is higher. Union fees are claimed on top.
| Example (illustrative amounts) | Covered work expenses | Better option |
|---|---|---|
| Apprentice: $180 of PPE, $250 of hand tools, no work km | $430 | The $1,000 standard deduction |
| Employed sparky: 2,400 km between sites ($2,184), $650 of tools, $280 of boots and PPE | $3,114 | Claiming actual expenses |
Run your own numbers in the standard deduction calculator. The full rules: the $1,000 standard deduction, explained.
| Keep | For |
|---|---|
| Date, km and purpose of each work trip | Cents per km (show how you worked out the km) or a logbook |
| Receipts for tools, PPE and consumables | Anything you claim above the standard deduction |
| Fuel, servicing and insurance receipts, plus work use records | Utes rated one tonne or more |
| Allowance details from your income statement | Overtime meals and tool allowances |
Keep records for 5 years. More in receipts and record keeping.
Nomo records the drives between sites while you work, reads your Bunnings and Total Tools receipts, and keeps a running total so you know which side of $1,000 you're on. Nomo is an Australian tax deduction and mileage/work kilometre tracking app for PAYG employees and sole traders.
Tag each drive: Site visit, Pickup or Delivery.
Snap the receipt at the counter. Nomo reads the merchant, amount and date.
Found so far this year, across trips and expenses.
See the mileage tracker for tradies.
Tradies on an ABN claim business kilometres and business expenses in the business section of their return, and the standard deduction doesn't cover business income. Nomo keeps the trips and receipts the same way. See sole trader tax deductions.
It depends on its carrying capacity. If it's built to carry one tonne or more, you claim actual work-related costs with records, not cents per km or a logbook.
Usually not. Home to your regular site is private travel, unless your work is itinerant or you carry bulky tools you can't leave on site.
Yes, if you're claiming actual expenses. The $300 figure is about claiming the whole cost at once, not about skipping the receipt.
Yes, if you paid for them and weren't reimbursed. Plain work clothes like jeans and drill shorts aren't claimable.
Renewing a licence, permit, card or certificate you need for the job can be claimable. The first one you needed to get the job usually isn't.
Only if you take the standard amount. If your real work expenses are higher and you claim them, you need records for all of them.
You do the work. Nomo keeps the record.
Site to site trips and receipts, all year. 14 days free, no card needed.
Start 14-day free trialBy the Nomo team · Last reviewed 24 September 2026. We check these pages against current ATO guidance and update them when the rules change.
General information only, not tax advice. Rules change and everyone’s situation is different, so check ato.gov.au or talk to a registered tax agent about your situation. Nomo is a record keeping app, not a registered tax agent.