Tax returns for tradies
Sparkies, chippies, plumbers, painters, tilers and labourers on an ABN. We claim everything you're entitled to and lodge your return online, checked by a Chartered Accountant.
What can tradies claim on tax?
Short answer: Generally the business share of your tools, ute, protective gear, licences, insurance, phone and training. What you can claim, and how much, depends on how you use each item and the records you keep. That's where we come in.
| Expense | Usually claimable? | Watch out for |
|---|---|---|
| Tools and equipment | Yes | Dearer items may need to be claimed over several years. |
| Ute or van | Business share | Private use has to be taken out. |
| Travel between jobs | Usually | Home to a regular workplace is private. |
| Materials and consumables | Yes | What you charge clients is income. |
| Protective clothing, boots and hi-vis | Yes | Plain everyday clothes aren't claimable. |
| Licences and tickets | Usually | Your first licence to qualify usually isn't. Extra tickets like a forklift licence usually are. |
| Insurance | Yes | Public liability, tools, and income protection you pay yourself. |
| Phone and internet | Business share | Needs a reasonable work percentage. |
| Training and courses | If linked to your trade | Not for moving into a new trade. |
| Accounting, software and bank fees | Yes | Including last year's tax return fee. |
Only the business share of anything you also use privately is deductible. Tick off your own costs with our deductions checklist.
Worked example
This is an example, not a real client. Sam is a sole trader electrician who invoiced $118,000 in 2025–26 and had $31,400 of business costs.
2025–26 resident rates. Sam's tax is about 20% of profit, so setting aside 20 to 25% of every payment would have covered it. Your figure depends on your income, costs and offsets.
Do tradies need to register for GST?
Yes, once your turnover reaches $75,000 a year. After that you charge GST on invoices and lodge a BAS, usually quarterly. We can handle your BAS or check where you stand.
What are PAYG instalments?
No tax comes out of what clients pay you, so after your first year with a tax bill the ATO usually asks you to prepay next year's tax each quarter. We set and adjust the amounts so you're not caught short.
Why tradies use an accountant
You're on the tools all day. We find the deductions you'd miss, get the business percentages right so they stand up if the ATO asks, sort out GST and PAYG, and tell you what to put aside. Every return is checked by a Chartered Accountant before it's lodged, usually for less than the extra deductions we find.
Common mistakes we fix
- Claiming 100% of a ute that's also the family car
- Claiming home-to-site trips that are private travel
- Missing tools and materials bought on a personal card
- Not registering for GST after passing $75,000
- Getting a big tax bill and PAYG instalments at the same time
Tradie tax questions
Can I claim my ute as a tradie?
Yes, the business share. How it's claimed depends on the vehicle: utes and vans designed to carry a tonne or more aren't treated as cars, so the actual business-use costs are claimed. We'll work out the right method and percentage for you.
Can I claim travel from home to a job site?
Sometimes. It depends on where your work is based and whether you carry bulky tools. We'll go through your travel and claim what you're entitled to.
Do I need to register for GST as a tradie?
Yes, within 21 days of your turnover reaching $75,000 a year. Below that it's optional.
How much should a tradie put aside for tax?
For most tradies, 20 to 25% of profit is a safe guide, plus any GST you collect. We'll give you a figure based on your own numbers.
Should a tradie be a sole trader or a company?
Most tradies start as a sole trader because it's simpler and cheaper. A company or trust can suit higher profits or more risk. It depends on your situation, so book a free 15-minute chat before changing.
Guides for tradies
Other industries
What our clients say
In their own words, from clients we prepare returns for every year.
- ★★★★★
“The turnaround time is another thing I am very grateful for. Once I have all my documents in [their] hands the lodgement of my statement is extremely quick.”
Jack M. · client for 4+ years, side business and personal tax - ★★★★★
“I've been going through various tax accountants over the years trying to find someone who could reliably handle the somewhat complex setup, including foreign income, capital gains etc. and who'd handle things online, i.e. without me having to print hundreds of pages, in-person discussions and phone calls having to go through personal financial details in the supermarket, or having to chase after them the day before a tax deadline. Honestly, Gavin has been the first where I feel my taxes finally are in good hands, and I've tried both big companies and small independents. The website can be a bit janky, but the service is top notch.”
Alex H.Google review · October 2025 - ★★★★★
“I'm a first time client and I must say Gavin is amazing! I experienced a visa and tax residency change last FY so my tax return was a little complicated, but Gavin provided excellent professional support from start to finish. I'll be coming back next year!!”
Alyssa K.Google review · September 2026
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- ★★★★★
“We are extremely satisfied with the clear communication and fast, professional service we received from Gavin. We will definitely use him for our annual tax returns from now on. Highly recommended!”
Sonja C.Google review · December 2025 - ★★★★★
“Gavin has been doing my tax for years. 5 stars every time. Cheers!”
Chris H.Google review · March 2026