EOFY 2026: The Essential Tax and Finance Checklist for Australian Tradies and Contractors
The end of financial year is almost here, and if you're a tradie, subcontractor, or labour hire worker in Australia, now is the time to get your finances in order — not scrambling after 30 June.
Whether you're swinging a hammer on a Sydney construction site, operating machinery in a WA mine, or running your own contracting business, the EOFY period is one of the most important financial moments of your year. Done right, it can mean thousands of dollars back in your pocket. Done wrong, it can mean ATO penalties, missed deductions, and a whole lot of stress.
Here's the practical breakdown you need.
Why EOFY Matters More for Trades and Industrial Workers
Salaried office workers often have simple tax returns. Tradies and contractors? Not so much. Between tools, vehicles, PPE, licensing, training costs, travel, and — for many — the complexities of operating through an ABN or labour hire arrangement, there's a lot more at stake.
The Australian Taxation Office (ATO) consistently identifies trades and construction workers as a group with significant legitimate deduction opportunities — but also one of the most audited groups for overclaiming. Getting it right matters.
1. Get Your Records in Order Before 30 June
This sounds obvious, but it's where most tradies fall down. The ATO requires you to substantiate any claim over $300 with receipts. For work-related deductions, that means:
- Receipts for all tools and equipment purchased during the financial year
- Logbook records if you're claiming vehicle expenses (you need a 12-week logbook to support the logbook method)
- Invoices and bank statements for subcontractors or materials if you're running your own ABN
- Pay slips and group certificates if you're employed through a labour hire arrangement
Cloud accounting apps like Xero, MYOB, or even a simple expense-tracking app on your phone can make this far less painful. If you've been piling receipts in your glovebox all year, now is the time to digitise them.
2. Know What Tradies Can Actually Claim
The ATO allows deductions for expenses that are directly related to earning your income. For trades and industrial workers, that commonly includes:
Tools and Equipment
Hand tools, power tools, safety equipment, and trade-specific gear are all potentially deductible. Items costing $300 or less can be claimed in full immediately. Items above $300 are generally depreciated over their effective life — unless the instant asset write-off threshold applies to your business.
Work Clothing and PPE
Steel-capped boots, hi-vis vests, hard hats, gloves, and other protective clothing are deductible. Regular clothing — even if you only wear it on site — is generally not, unless it's a required uniform or has a logo.
Licences and Certifications
Renewing your White Card, forklift licence, traffic control ticket, or any other industry certification required for your current role is deductible. Initial licences to enter a new field generally aren't — but renewals are.
Union Fees and Professional Memberships
Subscriptions to unions or industry associations relevant to your trade are deductible.
Vehicle and Travel Expenses
If you're travelling between job sites (not from home to a regular workplace), you may be able to claim vehicle costs. Keep a logbook and hold onto all fuel receipts. Check the salary guide for how common allowances are structured across different trades — some allowances are taxable income, which affects your overall position at tax time.
Phone and Internet
If you use your personal phone or internet for work — receiving job site calls, checking rosters, accessing plans — a portion of those costs is deductible. You'll need to calculate the work-related percentage.
3. Understand Your Employment Type — It Changes Everything
How you're engaged significantly affects your EOFY obligations.
If you're a direct employee (including through a labour hire services arrangement), your employer handles PAYG withholding and super contributions. You'll receive a payment summary or income statement through myGov. Your main job at EOFY is claiming legitimate deductions.
If you're operating as a sole trader on ABN, you're responsible for your own tax. This means quarterly PAYG instalments, GST lodgements if you're registered, and superannuation contributions for yourself. Many self-employed tradies underpay super throughout the year and then face a larger bill in July — don't let that be you.
If you're a company or trust structure, speak to your accountant before 30 June. There are year-end strategies around income distribution, trust resolutions, and director fees that have hard deadlines.
4. Super: Don't Leave Money on the Table
Employees in labour hire arrangements are entitled to superannuation contributions from their employer — currently 11.5% of ordinary time earnings in 2025-26, rising to 12% from 1 July 2026. If you suspect your super hasn't been paid correctly, check your ATO myGov account under 'Super' — it shows reported contributions from your employer.
If you're self-employed, consider making a personal super contribution before 30 June. You may be able to claim a tax deduction on those contributions (you'll need to lodge a 'Notice of intent to claim' with your fund). It's one of the most effective tax strategies available to sole traders.
Inside Construction has noted increasing awareness among trades workers of their super entitlements, particularly as the industry matures and workers look beyond weekly pay to long-term financial security.
5. Review Your Income Streams
Many tradies earn from multiple sources — a primary employer, weekend ABN work, cash jobs, and allowances. All of these are taxable income. The ATO receives data from banks, employers, and various government agencies, and it cross-references. Unreported income is one of the most common triggers for an audit.
If you've had multiple employers or clients during the year, make sure you've got a record of income from each. Australian Manufacturing has recently highlighted workforce shortages in manufacturing and food sectors driving up casual and contractor earnings — many workers in these sectors are earning more than previous years, which makes getting the tax right even more important.
6. Talk to a Registered Tax Agent — Before 30 June, Not After
A registered tax agent doesn't just lodge your return. A good one will:
- Identify deductions you've missed
- Advise on the right depreciation strategy for equipment
- Help you structure income if you're moving between employment types
- Ensure you're meeting GST and BAS obligations if you're on ABN
The tax agent lodgement deadline also extends your return deadline beyond 31 October, which gives you extra breathing room. Just make sure you engage one before that date.
What This Means for You: Key Takeaways
- Sort your receipts and records now — don't wait until July
- Know what you can and can't claim — tools, PPE, licences, and work travel are in; regular clothes and home-to-work commuting are generally out
- Check your super has been paid correctly throughout the year
- If you're on ABN, confirm your quarterly tax obligations are up to date before 30 June
- Engage a registered tax agent who understands the trades and construction industry
- Separate your income streams and make sure everything is accounted for
Heading Into the New Financial Year Strong
The new financial year brings fresh opportunities — especially for trades and industrial workers, with Australia's construction pipeline, manufacturing revival, and infrastructure investment all pointing to continued strong demand for skilled labour.
If you're looking to start the new financial year with better work, better rates, or more consistent income, Harrison Barratt Group works with tradies and contractors across construction, manufacturing, logistics, mining, and more. Whether you're after your next role or want to understand how labour hire arrangements work from a financial and compliance perspective, our team can help. Register as a candidate or request a quote to find out what opportunities are available in your trade.