Electrician

Maximize your tax return with ATO-approved deductions for sparkies.

Allowable Expenses

• Specialised Tools — Multi-meters, drills, and electrical testing equipment. Immediate deduction for items under $300.
• Vehicle & Travel — Transporting heavy tools and equipment between sites is usually deductible.
• Licensing & Subs — State electrical licensing fees and union or professional association dues.
• Sun Protection — Hats, sunscreen, and sunglasses if you work outdoors.

Tax Tips

• Keep records of your tool purchases and their business use percentage.
• Annual licensing fees are fully deductible in the year you pay them.
• Travel between two separate jobs is deductible.
• If your turnover exceeds $75,000, register for GST immediately — you must charge GST on all invoices from the date you cross the threshold, even before formal registration is confirmed by the ATO.

Frequently Asked Questions

Can I claim my electrical license fee?

Yes, the cost of renewing your license for your current work is deductible.

Are my sunglasses tax-deductible?

Yes, if you work outdoors and they are required for sun protection.

Can I claim the instant asset write-off for a new multi-meter or diagnostic tool?

Yes. Small business entities can instantly deduct eligible assets costing less than $20,000 (2024/25 threshold). A new multi-meter, oscilloscope, or thermal imaging camera used in your electrical work qualifies — provided your turnover is below $10 million. Claim the full cost in the year of purchase.

Do I need to lodge a TPAR as an electrician?

Yes, if you are in the building or construction industry and you make payments to subcontractors during the year, you must lodge a Taxable Payments Annual Report (TPAR) by 28 August each year. Even if you receive payments as a subcontractor yourself, those amounts will be reported by the principal — so ensure all income is declared.