A Tradie's Guide to Calculating and Claiming Tax Deductions for Work Tools

As a tradesperson, your tools are your livelihood. Whether it's a cordless drill set, a heavy-duty nail gun, or high-end laser levels, the ATO allows you to claim these costs as deductions. However, the method you use depends on the cost of the item.

Immediate Deductions vs. Depreciation

For tools that cost $300 or less, you can claim the full amount in the year you bought them. If the item costs more than $300, it is considered a depreciating asset. This means you must spread the deduction over the useful life of the item.

1. Keep every receipt in a digital folder or cloud app.
2. Check the individual price including GST to see if it crosses the $300 threshold.
3. Record the date of purchase clearly for the depreciation schedule.
4. Ensure the item is used primarily for income-producing purposes.

• Safety goggles and heavy-duty work gloves.
• Tool belts and heavy-duty storage crates.
• Batteries and replacement parts for power tools.
• Work-specific software or tablet subscriptions.

By keeping accurate records and using our depreciation calculator, you ensure you aren't leaving money on the table. Always check with your accountant if you are unsure about a large equipment purchase.