07 Dec Tax Tips for Tradies
- Tools and equipment
- Training and Upskilling
- Sunglasses and Sunscreen
- Safety Equipment
- Union Fees
Being a tradie in Australia is hard…we assume. As accountants, POP only leave the air-conditioned comfort of our office to buy snacks or return to our darkened homes. But all that sunlight, heavy lifting and measuring things looks pretty darned difficult. This one time an electrician came into the POP offices to repair an electrical thing, and we were trying to open a jar of pickles. He opened it easily and without him, those pickles would probably still be trapped.
Anyways, you can do this the easy way or the hard way. The easy way is to jump onto the POP website and complete your tax return within a few minutes. The system will guide you through the most common claims – including average amounts – and before you know it you’ll be done and dusted. Or, you can learn the intricacies of the tax system. If that sounds like fun, here are a few tax tips for tradies that you should make sure you claim for –
1. Tools and Equipment
Any tool you purchase (or lease) that is a requirement of your job is most likely claimable. If you are one of those people who buys things and then forgets to claim for them later, take a picture of the receipt at the time of purchase. Oh, and backup your phone.
2. Repairs on That Equipment
You’ve bought it, and you need to repair it. Those repairs should be included in your tax return as a deduction. So, if you are trying to save money by doing repairs yourself, remember to take the potential tax deduction into account.
3. Training and up Skilling
If you are gaining extra skills for the job you are currently in, then you can claim costs and fees. This includes anything that is specifically relevant to what you are doing, and will expand your current skill set in a relevant direction.
4. Sunglasses and Sunscreen
Australia is a hot place. If a part of your job is outdoors and you need sunglasses and sunscreen, then you can include them in your tax return. Again, when you purchase sunscreen for work remember to take a picture of the receipt on your phone.
5. Safety Equipment
Sunglasses and sunscreen fall into the category of “safety equipment.” Also in this category are PPE, steel-cap boots, safety glasses, and anything else that is a safety requirement of your workplace.
6. Union Fees
Or in fact, any fees that are specific to your industry. Memberships and subscriptions are all on the list of potential claims for tradespeople.
When you are making purchases during the year and aren’t sure whether you’ll need a receipt at tax time or even if the item is claimable, don’t take any chances. Save the receipt or take a picture of it and make sure you are receiving everything you are eligible for at tax time.