🏗️ Builder Tax Deductions Australia
Builders, Project Managers & Foremen — your complete 2026 ATO guide.
Last updated: May 2026
If you work as a builder in Australia, you're entitled to claim a deduction for many of the costs you incur doing your job. The ATO has specific rules about what counts and what doesn't — and getting it right can mean a meaningfully bigger refund. This guide covers every tax deduction available to Australian builders for the 2025–26 financial year, based on published ATO guidance for the Trades & Construction sector. We break down what's fully deductible, what's partially deductible (and how to apportion it), and what to avoid claiming.
The 3 ATO golden rules
To claim a work-related deduction, you must meet all three:
- You paid for it personally and weren't reimbursed.
- The expense directly relates to earning your income.
- You have a record (usually a receipt).
✅ Fully deductible 14 items
Hi-vis clothing and PPE
Hi-vis, safety vests, hard hats, gloves and protective gear required on site are deductible.
Steel-cap boots
Protective steel-cap boots required for site work are deductible.
Sun protection (hat, sunscreen, sunglasses)
Sunscreen, hats and protective sunglasses for outdoor work are deductible.
Laundry of protective clothing
Laundry of protective and hi-vis clothing is deductible.
Tool insurance
Insurance specifically covering your work tools is deductible.
Trade licence renewals
Trade licence renewal fees required for your role are deductible.
Union and association fees
Union fees relevant to your trade are deductible.
Safety training (White Card, EWP, etc.)
Mandatory and skill-maintenance safety training is deductible.
First aid certificate
First aid training required for your work is deductible.
Trade reference books and Australian Standards
Work-related reference books are deductible.
Toolbox and tool storage
Storage equipment used to secure your tools is deductible.
Parking and tolls during work travel
Parking and tolls during work travel are deductible; fines are not.
Builder licence renewal
Builder licence renewal fees are deductible.
Site management courses
Construction management training is deductible.
⚠️ Partially deductible 4 items
These costs are split between work and private use. You can only claim the work-use percentage — keep a 4-week diary or 12-week logbook.
Mobile phone (work-related use)
Work-related calls, messages and data are deductible at the work-use percentage based on a 4-week log.
Home internet (work-related use)
The work-related proportion of your home internet is deductible based on usage records.
Car expenses (between sites)
Travel between sites is deductible; commute is not.
Home office running costs
Electricity, gas, and depreciation of office furniture used for work are deductible (70c/hr fixed rate or actual cost method).
❌ Not deductible 2 items
Common audit traps. Claiming these can trigger ATO review and penalties.
General clothing (non-uniform)
Conventional clothing worn to work is not deductible, even if your employer requires it.
Driving fines and parking infringements
Fines and penalties are never deductible, even when incurred during work travel.
Need help lodging your return?
ALI Tax's qualified agents handle returns Australia-wide. Average refund: $2,847.
Get started with ALI Tax →Frequently asked questions
What's the simplest way to track builder deductions during the year?
Keep a separate folder or app (like Receipt Bank or your phone's notes) and capture every work-related receipt as you spend. The 'shoebox approach' costs most builders thousands in lost refunds each year.
Can I claim something my employer reimbursed?
No. If you've been reimbursed (or it was salary-packaged), you can't claim a deduction for it as well.
Do I need receipts for everything?
You need a receipt or written record for any deduction. For laundry up to $150 and small expenses up to $300 in total, you can use the ATO simplified methods without keeping every receipt.
What's the difference between deductible and partial?
Fully deductible means you can claim 100% of the cost. Partial means it's split between work and private use — you can only claim the work-use percentage based on a diary or logbook.
How long do I need to keep my receipts?
Five years from the date you lodge your tax return. The ATO can ask for records anytime in that window.