Tax deductions guide
Builder Tax Deductions Australia 2025-26
Builders have a mix of site tools, vehicle use, insurance, phone costs, and contractor expenses. This guide helps separate employee and ABN claims. It is written for builders, site supervisors, and residential construction contractors and is designed to work with the free TradieCalc.au tax calculator.
Open the free tradie tax calculatorCommon deductions to check
- Power tools, hand tools, measuring equipment, site safety gear, tablets, laptops, and work-related software.
- Public liability, tool insurance, accounting fees, and materials for ABN contractors.
- Phone, internet, home office paperwork, quoting time, and scheduling apps where you can show work use.
- Vehicle, trailer, parking, tolls, and site-to-site travel costs supported by records.
What to enter in the calculator
| Calculator section | What to include |
|---|---|
| Tools and PPE | Work tools, protective equipment, replacement parts, and eligible clothing used to earn income. |
| Licences and tickets | Renewals, industry tickets, union fees, and work-related training connected to your current role. |
| Travel and vehicle | Site-to-site kilometres, parking, tolls, overnight travel, or logbook-based work vehicle expenses. |
| ABN contractor mode | Business income, materials, subcontractors, equipment hire, insurance, accounting, super, and PAYG instalments. |
Records to keep
- Supplier invoices and statements.
- Insurance, accounting, and software invoices.
- Vehicle logbook and site diary.
Keep records for long enough to support the claim if the ATO asks. Photos of receipts, bank records, supplier statements, and job diaries can all help explain the work connection.
Common mistakes
- Mixing employee deductions with business expenses without considering ABN mode.
- Claiming private renovations or personal tools.
- Forgetting to separate GST collected from income if registered.
This guide is general information only. Deductions depend on your circumstances, employment type, and records. Speak with a registered tax agent for personal advice.
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TradieCalc.au is not affiliated with the ATO. Estimates only.
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