Professional Subscriptions & Memberships
Industry associations, chambers of commerce, and paid communities tied to your income are generally deductible. Small monthly charges often slip through the cracks—add them up and it’s real money.
Evidence: Annual statements or invoices; if the business purpose isn’t obvious from the supplier name, keep a short note.
Cloud Software & Digital Tools
Accounting software, CRM, project management, analytics, design suites, domain/hosting, password managers—if you use it to run your business, claim the business-use portion.
Evidence: Subscription invoices and a simple note of your business-use percentage (e.g., seats used for business, hours, or features).
Training & Professional Development
Courses that maintain or improve your current income-earning skills are generally deductible. Training to start a new business or career typically isn’t.
Evidence: Course invoice, payment receipt, and a line or two on relevance to your existing role.
Home-Office Running Costs
If you legitimately work from home, you may claim running costs via an eligible ATO method (e.g., revised fixed rate or actual costs). Choose the method that fits your work pattern and records.
Evidence: Timesheets/diaries, bills, and any method-specific records. Don’t double-claim across methods.
Bank & Merchant Fees
Payment gateway fees, EFTPOS, and business account charges are deductible but frequently missed because they’re buried in statements.
Evidence: Bank/merchant statements and a quick reconciliation to your P&L.
Motor Vehicle Expenses (with the right method)
Fuel, rego, insurance, servicing, tyres, depreciation—claimable when used for business. You must choose a valid method (e.g., logbook) and keep appropriate records. Home-to-work travel is generally non-deductible.
Evidence: Logbook/odometer (where required) and receipts. Estimations without evidence are risky.
Tools, Equipment & Depreciation
Laptops, phones, specialist tools, and plant used to earn income are deductible—either immediately or over effective life, depending on thresholds and rules. If mixed-use, apportion fairly.
Evidence: Invoices with make/model/serial, purchase date, and your basis for business-use %.
Bad Debts Written Off
Where recovery is unlikely and the amount was previously included as income, you can generally claim a bad debt—but it must be written off in your accounts before year-end.
Evidence: Ledger notes, correspondence, and a formal write-off resolution.
Protective Clothing & Laundry
Hi-vis, steel-caps, safety goggles and similar protective gear may be deductible; conventional clothing is not, even if worn at work.
Evidence: Receipts and a record of laundering (or a reasonable method consistent with ATO guidance).
Professional Advice & Compliance Services
Tax, legal, and compliance fees related to running the business are deductible—including preparation of financial statements and tax returns.
Evidence: Engagement letters/invoices linked to business activity.
Easy-to-Miss Extras
- Bank interest & charges on business loans/overdrafts
- Insurance (public liability, professional indemnity, cyber)
- Repairs & maintenance (not capital improvements)
- Advertising & marketing (including digital ads)
- Staff amenities and minor employee costs (limits apply)
- Credit card merchant surcharges on business purchases
Quick Reference Table: What to Claim & What to Keep
| Deduction | Common Miss | Evidence to Keep |
|---|---|---|
| Subscriptions | Monthly fees not captured | Annual statement, invoice, business-purpose note |
| Software | No apportionment noted | Invoice + business-use % and basis |
| Training | Relevant CPD ignored | Invoice + relevance to current role |
| Home office | Wrong method → underclaim | Diary/timesheets + bills as per method |
| Vehicle | No valid logbook | Logbook, odometer, receipts |
| Assets | No depreciation schedule | Asset register + invoices |
| Bad debts | Not written off by 30 June | Ledger + write-off resolution + evidence of attempts |
| Protective gear | Conventional clothes claimed | Receipts + proof of requirement |
| Professional fees | Ad hoc consults unclaimed | Engagement + invoice referencing business |
Record-Keeping: Evidence the ATO Expects
- Tax invoices & receipts with supplier, date, description, amount (and GST where relevant)
- Bank/merchant statements to reconcile recurring fees
- Business-use percentages for mixed-use items with a short note on the method
- Logbooks & diaries for vehicles and home office (as required by the method)
- Asset register for purchases/disposals and depreciation
Tip: Go digital—store PDFs by supplier and month. Consistency beats perfection.
Examples: Apportioning Mixed-Use Items
Example 1 — Phone Plan
Business use estimated at 70% from a four-week call/data diary. Claim 70% of plan fees; keep the diary snapshot.
Example 2 — Laptop
Used for work during business hours and personal on weekends. A reasonable basis yields 80% business use. Depreciate (or claim instantly if eligible) at 80%.
Example 3 — Internet
Mixed household plan; a workload/time basis supports 60% business use. Apply consistently across the year.
Don’t leave money on the table
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Book a Deduction Review Individual ReturnsFAQs
Can I estimate deductions without receipts?
You need evidence. Bank statements help, but proper tax invoices and short notes explaining business purpose are best practice.
How long should I keep records?
Generally five years from lodgement. Keep digital backups for safety.
What if I use an item for both business and personal?
Apportion the cost based on a reasonable, supportable method (time, usage logs, seats). Keep a brief note of how you calculated it.
Are tax agent fees deductible?
Yes—fees for preparing and lodging your return are usually deductible.
Will higher claims trigger an audit?
Unusually high or inconsistent claims may attract attention. If your claims are genuine and supported by evidence, you’re well placed.
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Start Now Talk to an AccountantGeneral information only. This article is not financial or tax advice. Consider your circumstances and seek advice from a registered tax agent or qualified professional.