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Tradie’s Tax Time Guide

Attention tradies: Tax season doesn’t have to be stressful for you. Take advantage of valuable deductions to reduce your tax bill and get a bigger refund. Sutton Tools want to give you a helpful guide to get you started:

Beat the Deadline & Save Big

  • Instant Asset Write-Off: Act fast – as part of the 2024–25 Budget, the government announced it will continue to improve cash flow and reduce compliance costs for small businesses by extending the $20,000 instant asset write-off by a further 12 months until 30 June 2025.

Top Deductible Expenses for Tradies

  • Tools & Equipment: Deduct the entire cost of tools under $300 or claim depreciation for more expensive ones. Keep receipts for proof!
  • Vehicle Costs: Fuel, registration, repairs, and more related to your work vehicle are all deductible. Maintain a logbook for work kilometers.
  • Mobile Phone & Internet: Partial deductions apply for work-related calls and data usage.
  • Work-from-Home Equipment: For small businesses, some home office equipment can be tax-deductible. Consult a tax professional or the ATO website for specifics.
  • Safety Gear & PPE: Sunscreen, respirators, work boots, and other safety equipment are deductible.
  • Work Clothes & Laundry: While laundry deductions have changed, there’s still room for claiming some work-related cleaning costs. Check the ATO website for details.

Stay Organized & Simplify Tax Time

  • Download the ATO myDeductions App: Easily track and manage your tax records.
  • Keep Receipts & Records: Use photos, screenshots, or cloud storage to keep all your receipts handy.

Important Reminders

  • These are general guidelines. Always refer to the ATO website for the latest information and eligibility criteria.
  • Complex tax situations may require professional advice.
  • The information provided is not a substitute for professional financial advice.

Remember: Don’t wait until the last minute. Start gathering your records and exploring deductions now!