Tax deductions guide
Mechanic Tax Deductions Australia 2025-26
Mechanics often own many small tools and safety items. The key is recording what was bought for work and whether larger assets need depreciation. It is written for mechanics, diesel fitters, and automotive apprentices and is designed to work with the free TradieCalc.au tax calculator.
Open the free tradie tax calculatorCommon deductions to check
- Spanners, sockets, diagnostic tools, scan tools, impact drivers, tool chests, gloves, eye protection, and protective boots.
- Licence renewals, trade certificates, first aid, forklift, and other workplace tickets connected to current work.
- Laundry for protective work clothing where eligible.
- Phone, internet, and home office admin for quoting or managing ABN jobs.
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
- Receipts for tool purchases and replacements.
- Employer requirements for uniforms or protective gear.
- Work-use percentages for phone and shared equipment.
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
- Claiming ordinary jeans or shirts as protective clothing.
- Forgetting high-value diagnostic tools may need depreciation treatment.
- Claiming private car parts or hobby tools.
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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