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Note: This article provides general information only. Please speak to a registered tax professional or accountant to get advice that suits your situation.
As the end of financial year approaches, tradies around the country are starting to gather receipts, organise logbooks and check in with accountants. It’s a busy time, but also a good opportunity to review what you might be able to claim back on your vehicle.
Whether you’re running a ute, van or light-duty truck, your vehicle is one of your biggest business assets. So, what kinds of vehicle-related expenses can you potentially claim at tax time?
Vehicle Rental Payments
If you’re using a FlexiRent or Rent-to-Own vehicle through Tradiespec, your weekly payments may be partially tax-deductible if the vehicle is used for income-generating business activities.
Rather than claiming rego, and insurance separately, you may be able to claim the business-use portion of the full weekly payment as a single operating expense, provided you keep appropriate records. We recommend keeping a logbook or timesheet as a great way to record how your vehicle is used for business.
Fit-Outs and Work Modifications
Custom add-ons and trade-specific upgrades are often considered work-related expenses, especially if they help you carry out your job more safely or efficiently.
You may be able to claim:
- Fixed toolboxes
- Ladder racks
- Roof racks
- Signage or decals
- Tipper modifications
- Body upgrades
At Tradiespec, many of our vehicles come pre-fitted with the basics, but if you’re adding further storage, racks or towing gear, make sure you keep itemised records.
Operating Costs (with a Logbook)
If you’re claiming based on actual vehicle use (rather than cents per kilometre), the logbook method may allow you to claim expenses like:
- Fuel
- Work-related tolls
- Car washes to keep your signage visible
You must keep a 12-week logbook and update odometer readings to calculate your business-use percentage. The logbook remains valid for five years unless your usage changes significantly.
Instant Asset Write-Off for 2024-25
As of the 2024–25 financial year, eligible small businesses with an aggregated turnover of less than $10 million can immediately deduct any asset purchases less than $20,000. This applies to assets first used or installed ready for use between 1 July 2024 and 30 June 2025.
This write-off is available on a per-asset basis, meaning you can potentially write off multiple eligible assets if each is below the threshold.
Thinking of Upgrading Before EOFY?
EOFY is a popular time for tradies to upgrade to more capable vehicles. If your current ute or van isn’t keeping up, it might be time to consider a smarter setup.
Tradiespec offers:
- Rent-to-Own and FlexiRent options with flexible contract periods
- Trayback and Tub utes with racks, toolboxes and tow bars
- Tippers and light-duty trucks
- Nationwide support across NSW, VIC, and QLD
- Fast approvals on ready-to-go vehicles
Keep Your Business on the Road This Financial Year
EOFY doesn’t need to be stressful. The sooner you get your logbooks, expenses, and records in order, the easier it will be to file your claim. And if you’re planning to upgrade before June 30?
Get in touch with our team early for more information or a free quote.
Tradiespec Expert
At Tradiespec, our mission is to help tradies across Australia with insights and advice to drive your business forward. Whether it’s tips on vehicle selection, how to manage your fleet or insurance information, we’ve got you covered.
