✅ Updated for 2025–26 tax year

If you're a tiler in Australia, you're entitled to claim a wide range of tax deductions that directly reduce your tax bill. Most tilers leave money on the table simply because they don't know what they can claim — or don't have the records to back it up. This guide fixes both problems.

📋 In This Article

  1. →Tools and equipment
  2. →Vehicle expenses
  3. →Licences and memberships
  4. →Clothing and PPE
  5. →Training and education
  6. →Phone and home office
  7. →Insurance premiums
  8. →Record keeping tips
  9. →FAQs

The ATO allows you to claim deductions for expenses that are directly related to earning your income. You must have actually spent the money, not been reimbursed by an employer, and have a record to prove it. Here's every claim available to tilers in Australia.

Tools and Equipment

Any tool or piece of equipment you buy for your tiler work is tax deductible. Under the Instant Asset Write-Off rules, many items can be written off in full in the year of purchase rather than depreciated over several years — check the current threshold with your accountant as it changes regularly.

What tilers can claim:

  • Wet tile saws and angle grinders
  • Notched trowels, grout floats and sponges
  • Levels, tile spacers and measuring tools
  • Suction cups and tile handling equipment
  • Tile levelling systems
  • Knee pads, safety glasses and steel-cap boots
  • Replacement parts and consumables used in your work
  • Tool repairs and maintenance
💡 Record-keeping tip:

Photograph every receipt immediately. Apps like Dext or Rounded extract the details automatically and store them in an ATO-compliant format. The ATO can audit up to 5 years back — paper receipts fade and get lost.

Vehicle Expenses

Your vehicle is typically your largest single deduction as a tiler. If you drive between job sites, carry tools and materials, or travel from home to a job site where you're based (not a fixed employer's premises), you can claim vehicle costs.

Logbook method — best for most tilers

Keep a logbook for 12 consecutive weeks recording every work journey. This establishes your business-use percentage (often 70–90% for tilers who use their vehicle mainly for work). Apply that percentage to your actual annual vehicle costs — fuel, registration, insurance, servicing, loan interest and depreciation.

Cents per kilometre method

Claim 88 cents per kilometre (2024–25 rate) for up to 5,000 km of work travel. Simple, but usually gives a smaller deduction for tilers who drive extensively. Use this method if your business-use percentage is low or you drive a modest amount.

Deductible vehicle costs (logbook method): fuel, oil, registration, insurance, loan interest, tyres, servicing, repairs and depreciation on the vehicle's value.

Licences, Registrations and Memberships

The cost of maintaining your trade licences and professional memberships is fully deductible. What tilers can claim:

  • Tiling contractor licence (state licensing body), White Card renewal, Building contractor registration, Waterproofing certification (where applicable)
  • White Card (Construction Induction Training) renewal
  • Any other mandatory or relevant industry licences

Note: The cost of obtaining your initial trade qualification is generally not deductible — it's considered a capital expense. Renewal and maintenance fees are deductible.

Clothing, PPE and Safety Gear

Standard everyday clothing isn't deductible even if you only wear it for work. However, safety equipment, protective gear and uniforms with your company logo are fully deductible.

What tilers can claim:

  • Steel-cap safety boots
  • High-visibility vests and shirts
  • Protective gloves and eye protection
  • Hard hats and hearing protection
  • Branded work shirts with your business logo
  • Laundry costs for deductible work clothing — up to $150 without receipts, more with

Training and Education

Training that maintains or improves your skills as a tiler is deductible. It must be related to your current work — courses that lead to a completely new career or trade are not deductible.

  • Safety refresher courses (first aid, working at heights)
  • Industry-specific upskilling courses
  • Business management training relevant to running your trade business
  • Industry conferences and seminars
  • Relevant books, trade magazines and subscriptions

Phone, Internet and Home Office

Claim the work-use percentage of your phone and internet bill. If 70% of your mobile calls are work-related, claim 70% of your plan cost. Keep a 4-week diary to establish the percentage if you're ever audited.

If you do administrative work from home — quoting, invoicing, scheduling — claim the home office running costs. The ATO's fixed rate is 67 cents per hour worked from home, covering electricity, phone and internet.

Insurance Premiums

All business insurance premiums are fully tax deductible:

  • Public liability insurance — deductible
  • Tools and equipment insurance — deductible
  • Income protection insurance — the portion covering lost income is deductible
  • Workers' compensation (if you have employees) — fully deductible

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Record Keeping — Don't Lose Your Deductions

The ATO requires you to keep records for 5 years from when you lodged the return. For most deductions you need a receipt, invoice or bank statement showing the amount, date and supplier.

The fastest way to stay on top of it: use Dext to photograph receipts on the spot, which pushes them directly into your accounting software. At tax time, everything is already categorised and your accountant can lodge your return in half the time.

Good accounting software helps too — Xero and Rounded both keep your income and expenses organised and make BAS lodgement straightforward.

Frequently Asked Questions

Can a tiler claim their work vehicle?

Yes. A vehicle used to travel between job sites and carry tools and equipment is deductible. Use the logbook method for the maximum deduction — keep a logbook for 12 weeks recording all business journeys, then claim that business-use percentage of all your annual vehicle costs.

Do I need receipts for everything?

For claims under $10, no receipt is required. For claims between $10 and $75, bank or credit card statements may be accepted. For amounts over $75, you need a proper tax invoice or receipt. Keep digital copies — apps like Dext make this easy.

Is accounting software tax deductible for tilers?

Yes — subscriptions to Xero, Rounded, MYOB, Dext and similar business software are fully tax deductible as a business expense. So is the cost of hiring an accountant to prepare your return.

What happens if I don't have receipts?

The ATO may disallow your deduction on audit. For small items under $300 with no receipt, you may be able to use a bank statement. For larger amounts, missing documentation is a genuine risk. This is why snapping receipts immediately with Dext is so important.

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## Managing Vehicle & Travel Deductions as a Tiler One of the biggest tax deduction opportunities for tilers is vehicle and travel expenses. The ATO allows you to claim either actual expenses or the simplified cents-per-kilometre method. For the 2025–26 tax year, the rate is **88 cents per kilometre**. **Which method should you use?** If you're running a ute or van for tiling work, you need to track every job site visit, material run, and travel to suppliers. The cents-per-kilometre method is straightforward: multiply your work-related kilometres by 88c. You don't need to prove fuel, maintenance, or insurance costs separately. However, if your actual vehicle expenses exceed 88c per kilometre, the actual expense method may be better. This includes: - Fuel and oil - Servicing and repairs - Tyres and batteries - Registration and insurance (work-related portion) - Depreciation (if you own the vehicle) - Interest on vehicle loans (if financed) **The key rule:** You can only claim the percentage of travel that's work-related. Commuting from home to your first job of the day isn't deductible, but travelling between job sites is. If you're unsure, keep a logbook for 12 weeks to establish your work-related travel percentage, then apply that to your total annual kilometres. Many tilers use accounting software like Xero to track mileage automatically and reconcile it with fuel expenses. This removes guesswork and strengthens your claim if audited. ## Home Office & Site Allowance Claims If you're running your tiling business from home, you're entitled to claim a proportion of your household expenses. This includes rent or mortgage interest, rates, electricity, internet, and phone bills—but only for the area used exclusively for business. **The ATO has two methods:** **Method 1: Actual expense method** Calculate the actual cost of running your home office. Measure the workspace as a percentage of your total home, then claim that percentage of expenses. For example, if your home office is 10% of your home's floor area and your annual electricity bill is $1,800, you can claim $180 (plus heating, cooling, and lighting adjustments). **Method 2: Fixed rate method** Claim $1.32 per hour of work performed in your home office (this includes time spent on quotes, invoicing, and administration). If you work 10 hours per week from home, that's roughly $686 per year. This method requires you to keep accurate time records. **Important:** You can't claim mortgage principal repayments, council rates, land tax, or home insurance using the fixed rate method—these can only be claimed under the actual expense method if your home is also a rental property. Many tilers overlook their site allowance entitlement. If you work away from home for extended periods (say, a kitchen renovation project lasting weeks), you may claim meal and incidental expenses. The ATO allows you to claim either actual expenses or use the site allowance rates, which vary by location and duration. Keep receipts for meals, laundry, and small incidentals when working away from base.

TIP: Use job management software like Tradify to log job dates and locations automatically. This creates an audit trail for travel claims and site allowance expenses, and helps you calculate work-from-home hours accurately.

## Tax Deduction Comparison: Tools, Uniforms & Consumables Here's a practical breakdown of common tiler deductions and what the ATO will accept: | **Expense Category** | **Deductible?** | **Notes & Limits** | |---|---|---| | **Tiling tools** (hand tools under $300) | ✅ Yes | Full deduction in year purchased. Items over $300 depreciate over time. | | **Work uniforms & hi-vis clothing** | ✅ Yes | Only if specific to your trade (embroidered with business name preferred). Everyday clothes don't count. | | **Safety equipment** (boots, gloves, respiratory masks) | ✅ Yes | Essential PPE is fully deductible. Replace annually or as needed. | | **Adhesives, grout, sealers** | ✅ Yes | Consumable materials used on jobs are direct business expenses. | | **Work vehicle fuel** | ✅ Yes | Either cents-per-kilometre or actual expenses method. | | **Professional development** (tiling courses, certifications) | ✅ Yes | Only if it maintains or upgrades your existing skills. | | **Insurance** (public liability, tools) | ✅ Yes | 100% deductible via BizCover or similar provider. | | **Mobile phone & internet** | ✅ Yes | Claim the work-related portion only (e.g., 30% if used for quotes and invoicing). | | **Subscriptions** (industry software, memberships) | ✅ Yes | Tradify, accounting software, and industry association fees qualify. | | **Power tools** (over $300) | ⚠️ Depreciate | Claimed over several years via depreciation, not immediate deduction. | | **Vehicle loan interest** | ✅ Yes | Only for work-related use percentage. | | **Meals while travelling to jobs** | ❌ No | General meals aren't deductible; only site allowance for extended work away from home. | | **Car park fees at job sites** | ✅ Yes | Legitimate work-related expenses. | | **Apprentice wages (if you employ)** | ✅ Yes | 100% deductible plus super contributions (11.5% for 2025–26). | The **$20,000 instant asset write-off** is available until 30 June 2026 for tilers with a turnover under $50 million. This means tools, equipment, and vehicles costing up to $20,000 can be deducted immediately rather than depreciated. If you're planning to upgrade your tool kit or buy a ute, this is the time to do it. --- ## Frequently Asked Questions

Can I claim my apprentice's wages as a deduction?

Yes. If you employ an apprentice, their wages are a direct business expense and are 100% deductible. You must also contribute the compulsory superannuation amount (11.5% of ordinary time earnings for 2025–26). The super contribution is also deductible. However, wages paid to yourself cannot be deducted—you pay tax on your net profit instead.

What happens if I claim too many deductions and get audited?

The ATO has a risk profile for tilers based on industry benchmarks. If your deductions are unusually high compared to your turnover, you may be selected for audit. The best defence is to keep detailed records: invoices, receipts, bank statements, and logbooks. Software like Xero automatically stores documents and creates an audit trail. If your claim is genuine and well-documented, you'll have nothing to worry about.

Can I claim my internet bill if I run my business from home?

Yes, but only the work-related portion. If you use the internet for quotes, invoicing, and admin, estimate the percentage of business use (e.g., 40%) and claim that fraction of your bill. Alternatively, if you have a separate business internet connection, claim 100%. The same applies to mobile phone costs—estimate the business-use percentage and claim accordingly.