Tax Return for Tradies – [Updated FY 2023-24] All You Need to Know (2)

1. Tax Return for Tradies – [Updated FY 2023-24] All You Need to Know Safe & Secure Tradies are the backbone of hands-on expertise in Australia. When we talk about tradies, we mean carpenters, electricians, plumbers, mechanics, and all the other skilled professionals who work hard to get the job done right. Tradies are the ones building, fixing, and maintaining everything from structures to systems, using their specialized skills and hard-earned know-how. www.taxly.ai

2. Tax Return for Tradies – Key ATO FY 2023-24 Updates • New fixed rate of 67 cents per hour, replacing previous rates, with stricter record-keeping for WFH Deductions. • Expenses for tools related to the trade are still claimable. • Deductions for work-related vehicle expenses (fuel, maintenance, insurance) remain applicable. • Costs for courses, uniforms, and licensing fees might still be claimable, depending on trade requirements. www.taxly.ai

3. Tool Repairs and Insurances: Costs for repairing or insuring work tools and equipment are fully deductible. For instance, if repairing a tool costs $50, the full $50 is claimable. Power tools hand tools specialized equipment required for the trade. Example: A carpenter buying a new set of power drills. www.taxly.ai

4. Do You Fall in the Tradie Category for Tax Return? If you’re wondering whether you fall into the “tradie” category in Australia, consider the nature of your work: Skilled Manual Work: Are you engaged in a skilled trade that involves manual labor and specialized skills? This could include professions like carpentry, plumbing, electrical work, automotive mechanics, welding, painting, and similar hands-on roles. Technical Expertise: Do you have specialized training, qualifications, or apprenticeship in a specific trade? Tradies typically possess technical expertise gained through formal training or on-the-job experience. www.taxly.ai

5. How to Maintain Records: Organization: Keep records organized and categorized by type of expense or income source. Consider using digital tools or accounting software for easy recordkeeping. Receipts and Invoices: Store physical receipts securely in a designated filing system. For digital receipts, maintain a backup and ensure they’re easily accessible. Bank Statements: Keep bank statements in a secure location and ensure they’re available for at least five years after filing returns. www.taxly.ai

6. The Bottomline Tradies return for tradies encompass various tax deductions. You can claim work-related expenses like tools, protective gear, and vehicle costs if they paid for these without reimbursement, keeping records to back up their claims. Employee tradies need expenses directly related to earning income, while small business tradies deduct costs necessary for conducting their business. Keeping accurate records and understanding eligible deductions are crucial for a successful tax return. www.taxly.ai

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