Getting Ready for EOFY 2026
The end of the financial year on 30 June 2026 is approaching, and it’s time for tradies across Australia to start organising their records and understanding what they can claim. Whether you’re a sole trader, subcontractor or running your own business, knowing your eligible deductions can make a significant difference to your tax return.
Here’s a breakdown of the key deductions available for the 2025-26 financial year.
Tools and Equipment
Tradies can claim deductions for tools and equipment used for work:
- Tools costing $300 or less can be claimed as an immediate deduction in the year of purchase.
- Tools costing over $300 must be depreciated over their effective life using the ATO’s depreciation schedule.
- Repairs and maintenance on existing tools and equipment are fully deductible in the year the expense is incurred.
Keep all receipts and consider using an accounting app to track purchases throughout the year.
Vehicle and Travel Expenses
If you use your vehicle for work — travelling between job sites, picking up materials, or attending client meetings — you may be able to claim:
- Cents per kilometre method: Claim a set rate per km (currently 85 cents) for up to 5,000 business kilometres.
- Logbook method: Claim the business-use percentage of all vehicle expenses, including fuel, insurance, registration and depreciation. Requires maintaining a logbook for at least 12 consecutive weeks.
Note: Travel between home and your regular workplace is generally not deductible.
Protective Clothing and Uniforms
Deductions are available for:
- Occupation-specific clothing: Steel-cap boots, hi-vis vests, hard hats and other safety gear required for your trade.
- Branded uniforms: Clothing with your business logo that is not suitable for everyday wear.
- Laundry costs: You can claim up to $150 for laundry of work-specific clothing without written evidence.
Insurance Premiums
Several insurance types commonly held by tradies are tax-deductible:
- Public liability insurance
- Professional indemnity insurance
- Income protection insurance (premiums are deductible; payouts are assessable income)
- Tool and equipment insurance
Licences, Registrations and Training
The costs of maintaining your trade qualifications are deductible:
- Licence renewal fees (e.g., QBCC, VBA, NSW Fair Trading)
- Continuing professional development courses
- Trade-related training and upskilling (must be directly related to current employment)
- Union and industry association fees
Common Mistakes to Avoid
- Claiming personal expenses: Only expenses directly related to earning your income are deductible.
- Missing receipts: The ATO requires evidence for claims over $300 (total, not per item).
- Overclaiming vehicle use: Be honest about the split between personal and business use.
- Forgetting super contributions: If you’re self-employed, personal super contributions may be deductible.
For homeowners looking at renovation-related deductions, see our guide on EOFY tax deductions for home renovations.