Tax deductions guide
Sole Trader ABN Tradie Tax Deductions Australia 2025-26
ABN tradies need to think beyond employee deductions. Income, GST, materials, subcontractors, insurance, super, and PAYG instalments can all affect the estimate. It is written for sole trader tradies and ABN contractors and is designed to work with the free TradieCalc.au tax calculator.
Open the free tradie tax calculatorCommon deductions to check
- Business materials, subcontractors, equipment hire, insurance, accounting, software, bank fees, and job supplies.
- Tools, PPE, phone, internet, home office admin, vehicle expenses, trailer costs, parking, and tolls.
- Personal deductible super contributions where eligible and properly documented.
- GST collected and GST credits if registered, keeping BAS records separate from income tax estimates.
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
- Invoices issued to clients and payment records.
- Supplier invoices and expense categories.
- Vehicle logbook and asset register.
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
- Treating GST collected as profit.
- Not setting aside money for tax and super.
- Mixing private bank spending with business expenses.
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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