Common Deductions for Mechanics — NSW
Tools (under $300 instant deduction), work boots, overalls, gloves, safety glasses, phone, trade licence/certification, union fees, self-education
Average Claim
The typical claim for mechanics is around $1,500 per year. Claims well above this may attract ATO attention — ensure your records are thorough.
NSW-Specific Information
SafeWork NSW licence fees are deductible. Sydney tradies often travel long distances between sites — keep a detailed logbook. Tools over $300 must be depreciated.
How to Claim
Report deductions at Item D1–D5 in your tax return. Keep receipts for 5 years. Items under $300: instant deduction. Over $300: depreciate over effective life.
From 2026–27: New $1,000 standard deduction available — claim flat $1,000 without receipts, or itemise if your actual expenses exceed $1,000. Details →
Frequently Asked Questions
What can mechanics claim in NSW?
Common deductions: Tools (under $300 instant deduction), work boots, overalls, gloves, safety glasses, phone, trade licence/certification, union fees, self-education. Average claim: $1,500.