Tradie Tax Q&A

Can tradies claim income protection and tool insurance?

Income protection outside super and tool insurance for work tools may be deductible, but the policy details matter.

Last updated: 7 July 2026. General information for Australian tradies. Not personal tax advice.

Income protection

Premiums can be deductible when the policy protects your income and is paid personally. Policies held inside super are different.

Tool insurance

Insurance that protects work tools can be deductible. If bundled with another policy, keep the premium breakdown.

Public liability and ABN work

ABN contractors may also claim public liability insurance as a business expense. Do not enter the same insurance twice.

Where to enter it in TradieCalc

Enter personal income protection and tool insurance in Other Items; enter ABN business insurance in Business Expenses.

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