1) Professional Subscriptions & Memberships
Industry bodies, professional associations, and trade memberships related to your income-earning activities are commonly missed. These small monthly charges add up over a year.
Evidence: Tax invoices or annual statements; show business purpose if not obvious from supplier name.
2) Cloud Software & Digital Tools
Accounting software, CRM, project management, analytics, design tools, and domain/hosting costs are deductible if used to run your business. If tools are mixed-use, claim only the business portion based on reasonable evidence.
Evidence: Invoices, subscription summaries, payment statements; note any private-use percentage applied.
3) Training & Professional Development
Short courses, certifications, and skill updates that are directly related to your current income stream are generally deductible. Training to start a new business or career typically isn’t.
Evidence: Course invoices, proof of payment, outline of relevance to current duties.
4) Home-Office Running Costs
If you legitimately work from home, you may claim running costs using eligible methods (e.g., revised fixed rate method where applicable) or actual expenses with proper records. Choose the method that gives a fair, supportable result based on your facts.
Evidence: Timesheets/diaries, electricity/internet bills, floor-plan or space-use notes where required by method.
5) Bank Fees & Merchant Charges
Don’t forget EFTPOS/merchant fees, payment gateway charges, and bank account fees related to your business accounts. These often get buried in statements and never make it to your P&L.
Evidence: Bank statements and merchant statements; annotate if a mixed-use account is involved.
6) Motor Vehicle Expenses
Fuel, registration, insurance, servicing, tyres, and depreciation may be deductible when used for business purposes. You must use a valid method (e.g., logbook method) and keep appropriate records. Private and home-to-work travel are generally not deductible.
Evidence: Logbook (where required), odometer readings, receipts for costs, clear business-purpose notes.
7) Tools, Equipment & Depreciation
Computers, phones, specialist tools, and equipment used to generate income are claimable. Depending on cost and prevailing rules, items may be immediately deductible or depreciated over their effective life. Mixed-use items require a reasonable business-use percentage.
Evidence: Tax invoices with asset details (make/model/serial), purchase date, and business-use percentage.
8) Bad Debts Written Off
If a customer won’t pay and recovery is no longer likely, you may claim a deduction for a bad debt—provided it was previously included as assessable income and you formally write it off in your accounts before year-end.
Evidence: Ledger notes, correspondence evidencing attempts to collect, board/management resolution writing off the debt.
9) Protective Clothing & Laundry
Protective gear required for your work—such as hi-vis, steel-caps, safety goggles—and laundry costs for these items can be deductible. Conventional clothing is not deductible even if worn at work.
Evidence: Receipts for items and laundry (or reasonable method consistent with ATO guidance).
10) Professional Advice & Compliance Services
Fees for tax, legal, and compliance advice related to your business are deductible. This includes preparation of financial statements, tax returns, and certain advisory services that help you meet obligations or improve compliance.
Evidence: Engagement letters, invoices, and records linking the advice to your business activities.
Quick Reference: Commonly Missed Deductions vs Evidence
| Deduction | Typical Miss | Key Evidence to Keep |
|---|---|---|
| Subscriptions & Memberships | Small monthly fees never captured | Annual statements, invoices, business-purpose note |
| Cloud Software | Mixed-use not apportioned | Invoices + business-use % basis |
| Training | Relevant CPD not recorded | Course invoice + relevance note |
| Home-Office | Wrong method selected | Timesheet/diary + bills per chosen method |
| Vehicle | No valid logbook/evidence | Logbook, odometer, receipts |
| Tools & Equipment | No depreciation schedule | Asset invoice + business-use % |
| Bad Debts | Not written off by 30 June | Ledger entry + write-off resolution |
| Protective Clothing | Conventional clothes claimed | Receipts + proof of protective requirement |
| Professional Advice | Ad hoc consults unclaimed | Engagement + invoice referencing business |
Let’s make sure you don’t leave money on the table
We’ll review your expenses, apportion mixed-use items correctly, and prepare a clean return that stands up to scrutiny.
Book a Deduction Review Ask a QuestionRecord-Keeping: What Evidence Do You Need?
- Tax invoices & receipts: Supplier, date, description, amount, and GST where relevant.
- Bank/merchant statements: Great for reconciling small recurring fees.
- Business-use percentages: Notes/logs supporting apportionment for mixed-use items.
- Logbooks & diaries: For vehicles and home-office where required by method.
- Asset register: Track purchases, disposals, and depreciation.
Tip: Move to digital: store PDFs in a cloud folder by supplier and month. Consistency beats perfection.
FAQs
Can I claim software that I also use personally?
Yes, but only the business-use portion. Keep a short note explaining your apportionment method—time used, seats, or features used for business vs private.
Which home-office method should I use?
Choose the method that best fits your actual usage and records. If you’re unsure, we can compare methods with your bills and work pattern to see which yields a fair, supportable claim.
What if I forgot to log vehicle trips?
A valid logbook is often required for higher vehicle claims. If you missed it this year, we can still explore other methods and set you up correctly for next year.
Are tax agent fees deductible?
Generally, yes—fees for preparing and lodging your tax return are usually deductible.
Can I claim bad debts from last year?
You can generally only claim a bad debt in the year you formally write it off and provided it was previously included as income. Timing matters—speak with us before year-end.
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Start Your Company Return Individual ReturnsGeneral information only. This article is not financial or tax advice. Consider your circumstances and seek advice from a registered tax agent or qualified professional.