The Australian Taxation Office (ATO) has developed a tailored occupation guide for tradies that includes things like tools and equipment, car costs and protective clothing. It explains which deductions people can and can’t claim this year, as well as the income they will need to declare and the records they must keep. The guide has also been translated into other languages.
On the topic of tools, the ATO notes that if new tools were purchased for work this financial year, a deduction can be claimed, but remember:
- If the tools or equipment are also used for private purposes, only the work-related portion can be claimed
- If the tools and equipment cost more than $300, or are part of a set that together cost more than $300, the deduction must be claimed over a number of years
- If the tools or equipment are supplied by an employer, another person, or if the costs have been reimbursed, a deduction cannot be claimed.
The ATO is also promoting the myDeductions tool in the ATO app for a fast and easy way to store receipts and keep track of records. The app allows users track the progress and outcome of tax returns after they have been lodged.
Go to ato.gov.au/tradie