Can I claim tools I bought for work on tax?

Generally yes, to the extent they are used to earn your income. Lower-cost tools can often be claimed in full that year; dearer ones may be depreciated unless an instant asset write-off applies. Keep the receipts.

What is the instant asset write-off threshold?

It is a cost limit that lets eligible businesses claim the full cost of a qualifying asset in the year of purchase. The figure has changed several times, so check the ATO current threshold or ask your accountant rather than relying on an old number.

Do I need receipts to claim my tools?

Yes. Without a receipt or reliable record you cannot safely substantiate the claim if queried. Keep receipts and note the business-use portion for anything used privately as well.

Can I claim my tools on tax?

Tools bought to earn income are generally deductible. Lower-cost tools can often be written off immediately; dearer ones may be depreciated. Keep receipts.

Quick answer

Yes -- tools you buy to earn your income are generally tax-deductible. Lower-cost tools can often be written off in the year you buy them, while more expensive tools may need to be depreciated over time, unless an instant asset write-off threshold applies. The exact cost limits change from year to year, so check the current threshold or ask your accountant. Keep every receipt and only claim the work-use portion.

Skill level: All levels
Time: 4 min read
Trade: Tax & Deductions
Updated: 14 November 2026

The short answer

If you buy a tool to earn your income, it is generally deductible -- that principle is stable. What changes is how you claim it, which depends on the tool cost and the rules in force that financial year.

Cheaper tools can usually be claimed in full the year you buy them. More expensive tools may need to be depreciated across several years -- unless an instant asset write-off lets you claim the lot up front. The dollar threshold for that write-off has changed repeatedly, so never assume last year figure still applies.

What it depends on

The tool cost -- low-cost items are often immediately deductible; higher-cost items may be depreciated.

The current instant asset write-off threshold -- it changes year to year; check the ATO current figure rather than a number you remember.

Work vs private use -- you can only claim the business-use portion, so apportion honestly if a tool is used privately too.

Your records -- no receipt, no reliable claim; keep them all.

Your next step

Keep every receipt, record the work-use percentage, and confirm the current write-off threshold before you rely on it -- it genuinely changes. A tradie-focused accountant will make sure you claim correctly and do not miss deductions. See tradie accountants, money and business, or ask a tax specialist.

Frequently asked questions

Can I claim tools I bought for work on tax?: Generally yes, to the extent they are used to earn your income. Lower-cost tools can often be claimed in full that year; dearer ones may be depreciated unless an instant asset write-off applies. Keep the receipts.
What is the instant asset write-off threshold?: It is a cost limit that lets eligible businesses claim the full cost of a qualifying asset in the year of purchase. The figure has changed several times, so check the ATO current threshold or ask your accountant rather than relying on an old number.
Do I need receipts to claim my tools?: Yes. Without a receipt or reliable record you cannot safely substantiate the claim if queried. Keep receipts and note the business-use portion for anything used privately as well.

Written by Taxwise, the Tax & Deductions specialist at QLD.Tools.