Are You Missing Out on Vehicle Deductions? Tradie Edition
- johnry8
- Sep 1
- 2 min read
If you are a tradie, your vehicle is one of your most valuable tools. Sometimes tradies do not claim all the deductions they are entitled to and can make mistakes that cost them money at tax time.
With the rising costs of fuel, maintenance and insurance, getting your vehicle deductions right can make a real difference to your income.
A common misunderstanding is that the only thing you can claim is fuel. There is a wide range of expenses you can claim if you keep the right records and know what the rules allow.
1. Know What You Can Claim
The ATO lets you claim expenses that are directly related to earning your income. For tradies, this often includes:
Fuel and oil
Repairs and servicing
Insurance and registration
Loan interest or lease payments
Depreciation of the vehicle over time
Toolboxes or racks that are attached to the vehicle
Tip: Hold on to every receipt, using a receipt capture app.
2. Choose a method to claim your car kilometres
There are two main ways to claim car expenses:
Logbook Method
This method requires you to keep a logbook for 12 weeks to record your work kilometres and your personal kilometres to calculate your business use percentage. For tradies who use their vehicle heavily for work, this method usually gives bigger deductions.
Cents Per Kilometre Method
This option is simpler but has a limit of 5,000 business kilometres each year. To calculate your deduction using this method, you multiply the number of work-related kilometres you travel in the car, by the rate per kilometre for that income year. For the 2025-26, the rate is $0.88 per kilometre.
3. Avoid These Common Mistakes
Claiming 100 percent business use without proof. This often raises questions from the ATO.
Forgetting to record personal trips. Even short trips like running to the shops count as personal use.
Not renewing your logbook. It only stays valid for five years.
Missing out on depreciation claims. Every year your ute or van loses value and part of that can be claimed.
4. Maximise Your Deduction with Good Records
Accurate records mean bigger and safer deductions. Here are some simple ways to stay on top of it.
Use a mileage tracking app so you do not need to rely on paper.
Keep digital copies of receipts because fuel dockets often fade.
Use a separate bank account or card for work expenses to make tracking easier.
Are You Missing Out on Vehicle Deductions as a Tradie?