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Tax deductions for Tradies – Protax Accountants Pty Ltd

by Yohan Soza | Articles

Being self employed as a Tradie is a way of life for some Australians. The flexible working hours, being your own boss, known as an expert / professional in a given field, extended holidays! are just a few reasons that entice most to choose a specialized line of work and be self employed. These tradesmen or Tradies as widely and fondly known amongst Aussies usually work on their own with a home / office, a vehicle (or Ute) and specialized tools, amongst others.

It’s quite lucrative if a Tradie consistently delivers a good, efficient and reliable service to his / her customers. However, unlike a fixed income or salaried employee, the tax time can be a challenge for most Tradies. The PAYG on income is not deducted monthly hence there could be a negative surprise in terms of a tax liability at EOFY. In addition all work related expenses may not be properly recorded, invoices may not be properly maintained, hence collections are a mess; the list goes on.

Whilst there are answers to most of the above, the undersigned has touched on tax deductible expenses available to Tradies. Some are commonly known expenses which are tax allowed, but if the list is carefully analyzed there are quite a few expenses one would easily miss! For a Tradie these costs add up, resulting in more taxes being paid annually than legitimately or legally required.

Protax has formulated a list of expenses that can be tax deductible (or not as the case may be) which should enable
most Tradies to save on their tax liability during the tax season. It is not an exhaustive list but intends to cover most
material expenses widely discussed today between Tradies. This is for work related expenses incurred in the normal
course of business to generate income. Hence any private expenditure should be identified and taken out.

ExpenseDetailsTax
Deductible?
Protective clothingAll clothing inclusive of steel capped shoes, high viz, helmets, etc.Yes
LaundryFor all work related clothingYes
Tools & equipmentInstant asset write off limits applyYes
RepairsIncurred on assets used for workYes
TransportVehicle expenses like fuel, servicing etc or public transportYes
Learning / coachingAny expenses incurred on learning a course to enhance the quality of
work or to be up to date in the line of work, inclusive of travel expenses
Yes
Mobile billsIf the mobile phone is solely for work and kept standby to receive
customers
Yes
Sun protectionSunscreen, sunglasses used during workYes
Home officeIf a part or a room at home is used for work related activityYes
Super contributionUpto $ 25,000 per annum, paid before income tax is paid.Yes
StationeryUsed for workYes
Bank chargesOnly if the bank account generates interest incomeYes
InterestBorrowed for work related financing of assets etc.Yes
Tolls / parkingIncurred during work related travelYes
Trade union /
professional association fees
Expenses related trade or association bodies, including annual
practicing fees costs
Yes
Technical
publications
Related to the line of workYes
Tax / accountancy
fees
Services obtained for tax and accounts preparation, plus travel to
meet your tax agent
Yes
Public liability
insurance
If required to carry out workYes
Legal expensesFor work related contracts etc.Yes
InsuranceIncome protectionYes
MealsRoutine meals during work and travel
No
If worked after normal hours and overnight travelYes
FinesImposed by court or authoritiesNo
EntertainmentDrinking or dining out with friendsNo
Conventional
clothing / grooming
Not related to workNo
Driver’s licenseRenewal and acquiring feesNo
Club membershipSocial clubs feesNo
Child careChild support expensesNo
OtherAny other costs incurred to generate work income ,its most oftenYes

Need more details? We specialize in Tradie tax returns! So why not call Protax Accountants Pty Ltd for a free confidential discussion? You will be amazed on the legitimate tax deductions you have been missing out all these years.

Yohan 0451 011 399, or Dirk 0449 917 046 or our general line 03 8512 0338/7

Protax Accountants Pty Ltd



General Lines - 03 8512 0338 / 7



Yohan - 0451 011 399



Dirk - 0499 917 046



Office14,17-19, Miles Street, Mulgrave, VIC 3170

Liability limited by a scheme approved under Professional Standards Legislation    

Protax Accountants Pty Ltd



General Lines - 03 8512 0338 / 7



Yohan - 0451 011 399



Dirk - 0499 917 046



Office14,17-19, Miles Street, Mulgrave, VIC 3170

Liability limited by a scheme approved under Professional Standards Legislation    

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