Deduction wizard

Occupation Deduction Wizard

A step-by-step, occupation-specific deduction estimator that applies ATO rules to your actual expenses. Pilot occupations for EOFY 2025-26: tradies, nurses, and software developers.

Tradies Nurses Developers

01 —INPUTS

Step 1 · Choose your occupation

Carpenters, electricians, plumbers, builders, construction workers. Key deductions: tools, PPE, site-to-site travel, protective sun gear for outdoor work.

Step 2 · Your income

Gross income (AUD, 2025-26)

Total salary/wages before tax.

Step 3 · Your tradie deductions

Tools & equipment costing $300 or less each

Individual items up to $300 (hand tools, power drills, testers). Deductible in full the year you buy them.

Tools over $300 each (total combined cost)

Larger items (compressors, nail guns, saws). Depreciated — first-year estimate uses 5-year DV method.

Protective clothing & PPE

Steel-cap boots, hi-vis, hard hats, safety glasses, cut-resistant gloves. 100% deductible if occupation-specific.

Sun protection (if outdoor work)

Sunscreen, sunglasses, sun-protective hats and shirts. Deductible for outdoor workers (PCG 2023/1).

I wash my own occupation-specific uniform regularly

ATO: up to $150 laundry without receipts if you wash occupation-specific clothing (branded hi-vis, PPE).

Kilometres driven between sites or to pick up materials

Home → first site is NOT deductible unless you carry bulky tools >20kg. Site-to-site and trips to suppliers ARE deductible at 88c/km (max 5,000 km).

Union / trade association fees

CFMEU, ETU, MBA, MPMSAA, licensing body fees. 100% deductible.

Phone & internet — annual cost

Enter your annual total; set the work-use % (typical: 20-40% for trades).

Self-education for your current trade

Licensing renewals, white card refreshers, short courses for current role. NOT a first-qualification apprenticeship.

Common traps for tradies

Home → first site travel is NOT deductible unless you carry bulky tools over 20kg with no secure on-site storage.
Ordinary clothes (jeans, plain t-shirts) are not deductible even if worn to work.
Meals and coffee on the way to or at work are private, not deductible.

02 —RESULTS

Estimated deductions for tradies

$0.00

Line-item breakdown

Enter your expenses on the left to see the breakdown.

Official ATO guidance

Estimates only. Keep receipts for every item claimed except the $150 laundry allowance. Depreciation uses simplified half-year DV approximation — real claims use days-held apportionment.

Edit inputs ↑

How this wizard works

Pick your occupation, enter your income, and fill in each line item that applies. Each line uses the correct ATO treatment automatically.

→ Dollar amounts under $300 each — Claimed in full (immediate deduction).

→ Items over $300 — Show a first-year depreciation estimate using the effective life the ATO assigns.

→ WFH hours — Multiplied by the 70c/hr fixed rate.

→ Motor vehicle km — Multiplied by 88c/km and capped at the 5,000 km limit.

→ Laundry — Uses the $150 no-substantiation allowance when you wash occupation-specific clothing.

→ Phone/internet — Multiplied by your work-use percentage.

Your total estimated deductions flow into the EOFY refund engine so you can see the refund impact at your marginal tax rate.

Why occupation-specific matters

ATO audits focus on claims that don't match the profile of the occupation. A nurse claiming $2,000 of tools, or a developer claiming $1,500 of protective clothing, is unusual enough to trigger a data-match query. Claiming the right deductions for your occupation — and avoiding the wrong ones — is the whole game.

Each profile in this wizard lists the common deductions the ATO explicitly accepts for that role, plus the traps that cause the most audit adjustments (home → first workplace travel, undergraduate qualifications, regular shoes for nursing, self-initiated tech learning).

Common deductions by occupation (2025-26)

Tradies & construction workers

Tools, PPE, steel-cap boots, sun protection for outdoor workers, site-to-site travel, union/trade fees, phone, and self-education for your current trade.

Nurses & midwives

AHPRA registration, professional indemnity, union/ANMF fees, uniform laundry, non-slip shoes, clinical tools (stethoscope, fob watch), CPD courses, journals, and travel between hospitals.

Software developers & IT professionals

WFH hours at 70c/hr, computer gear, software subscriptions, conferences and certifications (AWS/Azure/GCP), technical books, and ACS membership.

FAQ

Which occupations are supported?

The pilot covers three high-demand occupations: tradies and construction workers, nurses and midwives, and software developers/IT professionals. We're expanding to 8 clusters throughout EOFY season.

How does the WFH fixed rate work?

Since 1 July 2024, the ATO fixed rate for work-from-home is 70c per hour. It covers electricity, gas, phone, internet, and stationery. You can't separately claim those items if you use the fixed rate. Keep a record of your total WFH hours across the year.

When can I claim the $150 laundry allowance with no receipts?

The ATO lets you claim up to $150 for laundering occupation-specific clothing without written evidence. This applies when you wear compulsory uniforms, protective clothing, or occupation-specific work clothes. Ordinary clothes (even branded) don't qualify.

How is the 88c/km motor vehicle deduction calculated?

The cents-per-km method gives you 88c per km of work-related travel, capped at 5,000 km per car per year. Commuting to your regular workplace doesn't count — only travel between workplaces, to client sites, or for work errands. Over 5,000 km, use the logbook method instead.

What about tools and equipment over $300?

Items costing more than $300 each must be depreciated over their effective life. Laptops are 2 years, power tools are typically 5 years. This wizard shows a simplified first-year estimate using the diminishing-value method with half-year apportionment. Use our dedicated depreciation calculator for an exact year-by-year schedule.

Is this a substitute for a tax agent?

No. This is a guide based on ATO rules to help you understand what you can claim. For complex situations (investment properties, sole trading, substantial capital purchases, or unusual deductions), see a registered tax agent.

Tax Accuracy & Sources

Reviewed: March 2026 · Tax year: 2025-26

Occupation-specific deduction estimator for 2025-26 resident individuals. Pilot covers tradies, nurses, and software developers. Uses ATO fixed-rate methods (WFH 70c/hr, motor 88c/km with 5,000 km cap), $150 laundry flat, immediate write-off for items under $300, and simplified first-year DV depreciation with half-year apportionment for items over $300 (laptops 2-yr, tools 5-yr effective life). Refund impact applies 2025-26 resident brackets, LITO, and 2% Medicare Levy; does not model HELP, MLS, or family thresholds — use the full refund wizard for those.

Occupation Deduction Wizard

Tax Accuracy & Sources

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