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Tax Deductions for Labourers

Hey Labourers! Down for a cashy? Here is the proposal; fix-up your tax return by claiming all of your tax deductible expenses, then you maximise your money. Don’t leave anything out of your online tax return. If you save every little bit, and deduct everything you’re entitled to, the return can be massive. 

When it comes down to it, there are three main criteria that qualifies an expense for tax deduction, which is calculated against your income: 

  • You must have spent the money and not have been reimbursed 
  • It must be related to your job
  • You must have a record to prove it

However, this in itself can be hard to understand. What constitutes an expense as “related” to your job? Here is what defines your taxable income, and a list of expenses that labourers in Australia can deduct on your next online tax return.

Remember, a record isn’t necessarily a receipt. There are tax deductions you can claim without a receipt. Continue on to find out more.

What Is Your Taxable Income

Your taxable income is money generated from your employer or your work. Your taxable income also includes:

  • PAYG summaries 
  • Pensions and government allowances 
  • Interest earned (banks etc)
  • Dividends 
  • Rental property income
  • Business income
  • Other income earned (capital gains etc)

Tax Deductible Expenses for Labourers

Labourer Specific 

  1. Buying any work related clothing/uniforms 
  2. The cost of laundry for work clothes/uniforms  
  3. Protective clothing items (hi vis, boots, helmets, sun protection etc) 
  4. Purchase of equipment and tools (hammers, screwdrivers etc) up to $300 
  5. Depreciation expense of equipment and tools (saws etc) over $300
  6. The repair and/or upkeep of labouring tools and equipment 
  7. Interest generated from loans relating to work activities
  8. Self-education and courses for work
  9. Licenses for labourers 
  10.  Fees from joining a union/other similar organisations 
  11. Subscriptions and magazines
  12. Travel expenses if work related (conferences etc)
  13. Driving between two places of work in your own vehicle. This is usually best claimed using the cents per km method of claiming a tax deduction.

The Protective Clothing You Use For Work

This will probably be one of the bigger deductions you can claim. All of the hard hats, protective glasses, protective boots and everything in between can be claimed on tax, so make sure you keep evidence of the purchase. 

Record What Tools You Buy

If you’re a labourer and your own boss, you will no doubt be buying a lot of different tools. Make sure you keep the receipts for these tools because they are expenses you can claim back on tax.

Car Expenses 

Usually, you cannot claim your car/travel expense to and from home to work. However, you can if you are also carrying bulky, heavy tools and equipment that can not be stored safely at your place of work. If this is the case, there are two methods you can use to calculate your tax deductible expense: 

  • Cents Per Kilometre: You can claim a certain amount of cents per kilometre you travel for work *(up to 5000km)
  • Logbook: You can keep a logbook over 12 weeks to calculate what percentage of your car you use for work, and claim that percentage of your expense as a tax deduction. 

Mobile Phone

As a labourer, you probably use your phone for work to communicate with clients and managers. You can calculate how much of the phono you use for work and deduct that amount of your phone bill as a tax deduction. 


  1. Car expenses and general wear (estimated Km or a logbook with all expense items)
  2. Travel expenses for your work (flights, taxis and trains etc)
  3. Accommodation needed on work reasons (including meals)
  4. Phone bills for work
  5. Work related computing 
  6. Working from home costs 
  7. Self-education 
  8. Tax return fees dating to the year previous 
  9. Insurances 
  10. Rental expense (if you are renting)
  11. Charity donations and gifts
  12. Sun protection (if you have to work outside)

Maximising Your Tax Return With An Online Tax Service

There will be more tax deductions for construction workers that aren’t on this list. Tax deductions are not only industry specific, but also change from individual to individual.

The best way to claim the most you can is with a tax agent like One Click Life. We have made the process simple with 5 easy steps.

The more you deduct, the less tax you pay and the more money you can spend on yourself. Clearly, you will want to deduct the most you can, and the sure-fire way to do that is with a tax agent or accountant. If you can claim your tax agent/tax return fee back on tax, why wouldn’t you use one to minimise your tax?

One Click Life fast offers online tax returns at your fingertips in an easy-to-use platform run by industry professionals. 

Taxes, health insurance, and wills can be time-consuming and tedious. Our app allows you to be able to do this fuss-free, giving you a simple way to organise, track and manage all of your life admin in one place.

Let One Click Life take care of your tax return, and life’s essential tasks so you can spend more time doing the things you love.

It’s all just ONE CLICK away