Tool Tips at Tax Time 2021

With tax time approaching, it's good to remember that Tradies can claim on a wide range of essentials, including tools, uniforms, and protective clothing like hi-viz vests, steel capped boots, safety glasses and other items that protect health and safety in the workplace.

Instant Tax Write-Offs:

According to ATO rules, eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used or installed ready for use.

Instant asset write-off can be used for:

• multiple assets, if the cost of each individual asset is less than the relevant threshold
• new and second-hand assets.

To counter the pandemic, the Morrison Government increased the instant asset write-off limit from $30,000 to $150,000 until 31 December 2020 (after that date, the write-off reduced to $1,000).

Tradies can also take advantage of the new temporary full expensing scheme to assist with the cost of work related items such as vehicles. This new scheme was introduced in the 2020-21 Budget, and works like an extension of the instant asset write-off system.

What you can claim depends on whether you are an employee, tradie or a small business (sole trader, partnership, company or trust). Talk to your accountant or refer to the ATO website for full criteria.

Buy your tools and PPE at Hume:

Hume Building Products is a leading Australian distributor of buildings products, tools and accessories, with eight warehouse stores across Sydney and Melbourne, selling quality tools and accessories for building projects large and small.

Our new Yennora store showcases a wide variety of power tools and parts, hand tools, plastering tools, rendering tools, safety equipment and more. 

We partner with respected brands such as Makita, DeWalt, Paslode, Wallboard Tools, Intex, Global Trade Supplies (TradeMark Fasteners, GTPRO and MaXisafe), Ramset, Trim-Tex Drywall Products, Pro Plaster Products, Tapepro Drywall Tools, and Wallpro and to bring you the best tools and accessories available.

Contact your Hume rep, or call 13 4863 for more information on our product range.

Read More:

• Tradie Tax: EOFY Planning for a Ripper 21/22 (article from The Tradie Magazine)