Quick answer
Most FIFO workers can claim tools and equipment they personally purchase and use for work. However, you cannot claim items supplied by your employer or equipment used privately. Depending on the cost, the deduction is either immediate or claimed over time (depreciation).
What tools FIFO workers CAN claim
You can claim tools and equipment if you paid for them yourself and they are required to perform your job.
Common deductible items include:
- Hand tools (spanners, shifters, pliers, screwdrivers)
- Power tool batteries and chargers
- Drill bits, grinding discs and cutting blades
- Replacement parts and repairs
- Tool bags and storage boxes
- Safety gear not provided by employer (gloves, glasses, pads)
- Measuring equipment used for work
- Personal torches or inspection lights
The key rule:
If the tool directly helps you earn income and you bought it — it’s usually deductible.
When tools must be depreciated
The ATO uses the $300 rule:
- Tools costing $300 or less → claim full amount in one tax return
- Tools costing over $300 → claim gradually over several years
This process is called depreciation.
Example:
A $900 power drill is claimed over its effective life rather than all at once.
What you CANNOT claim
You cannot claim tools if they are considered private or employer supplied.
Non-deductible items include:
- Employer provided tools or shared crew equipment
- Items reimbursed by your company
- Home workshop tools not required on site
- Tools mainly used privately
- Everyday clothing or boots usable outside work
If you didn’t pay — you can’t claim.
Related deductions FIFO workers often miss
Many workers overlook other work-related deductions connected to equipment use.
For example, you may also be able to claim laundry and uniforms, meals and accommodation rules, or travel between worksites depending on your situation.
FAQ
Can I claim a tool if I only use it sometimes?
Yes — but only the work-related portion. If it’s 50% work use, you claim 50%.
Can apprentices claim tools?
Yes. Apprentices can claim tools they purchase themselves even if required by their employer.
What about replacement batteries and consumables?
Consumables are usually fully deductible in the year you buy them.
If you use apps, emails or photos for work tasks, see our guide on phone and internet deductions.
Summary
FIFO workers can claim personally purchased tools and equipment used for their job. Items under $300 are claimed immediately, while expensive tools are depreciated over time. Employer supplied or private-use items are not deductible.
Full FIFO Tax Deduction Guide
If you want a full breakdown of FIFO tax rules, common deductions and ATO guidelines, read the guide below.