CLAIMING TOOLS, ASSETS AND OTHER EXPENSES
AROUND TAX TIME
Tax time is around the corner and it’s important to know what tools, assets and other expenses of
your business you can and cannot claim. Firstly, what you can claim depends on whether you are an employee tradie or a small business (sole trader, partnership, company or trust).
Employee tradies can claim a deduction for
expenses incurred as an employee tradie if: • You spent the money yourself and were not reimbursed.
• It was directly related to earning your income. • You have a record to prove it.
The type of deduction you claim depends on the cost of the asset.
If the tool or equipment cost you $300 or less, you can claim a deduction for the full amount in the year you buy it, if:
If your expense was for both work and private
purposes, you can only claim a deduction for the work-related portion.
• You use it mainly for work purposes. • It’s not part of a set that together cost more than $300.
Small businesses (sole trader, partnership, company or trust) can claim expenses if:
You can claim a deduction for the cost over the life of the item (that is, decline in value), if the tool or
The money has been spent for your business and not a private expense.
If the purchase is for a mix of business and private
use, only the portion that relates to your business can be claimed and you MUST have record to prove this.
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What deductions can I claim this tax time?
equipment:
• Cost more than $300. • Is part of a set that together cost more than $300. You cannot claim a deduction for tools or equipment that your employer or third-party supplies for use.
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