Tax deductions for sole traders: what you can actually claim
Sole traders can generally claim any expense genuinely incurred in running the business. Here are the categories that come up most often.
The general rule
A business expense is usually deductible if it was incurred in earning your assessable income, is not private or domestic in nature, and you have a record of it. The categories below are the ones sole traders run into most.
Common categories
Tools and equipment used for the business, software and subscriptions, professional memberships and insurance, marketing and website costs, and a portion of home-office running costs if you work from home.
Vehicle and travel expenses for business use — usually calculated with the logbook method (your actual business-use percentage) or the cents-per-kilometre method for lighter use.
Keeping the records straight
The deduction itself matters less than the evidence behind it — a receipt or bank record showing what was bought, when, and why it relates to the business. Mixing personal and business spending on the same card is the single biggest reason deductions get missed at tax time.
Fin scans your real transactions as they land and surfaces likely deductions across these categories, so nothing gets lost between now and your return.
Take it further
Split business from personal automatically and never miss a deduction.
Depreciation (decline in value) →Claiming the cost of a big asset gradually over its life.
Logbook method (car expenses) →Claim your car’s real business-use share of running costs.
Instant asset write-off →Immediately deduct an eligible asset instead of depreciating it.
Sole trader →The simplest business structure — you and the business are one.
Common questions
Can I claim my home internet as a sole trader?
Generally yes, for the business-use portion — you would apportion the cost based on how much you use it for work versus personal use. This is general information, not personal tax advice — check what applies to you with your accountant or the relevant tax authority.
Do I need a receipt for every deduction?
You generally need written evidence for claims, though some smaller categories have simplified record-keeping rules. Bank and card statements can support a claim alongside receipts. This is general information, not personal tax advice — check what applies to you with your accountant or the relevant tax authority.
What is the logbook method?
It works out your car’s business-use percentage from a 12-continuous-week logbook, which you then apply to your actual running costs — fuel, servicing, insurance and depreciation.
More on tax & compliance
A Business Activity Statement (BAS) reports the GST you have collected and paid to the ATO, usually every quarter. Here is what actually happens, step by step.
GST vs VAT: what is the difference?GST and VAT are close cousins — both are consumption taxes added at the point of sale — but the name, rate and rules shift by country.
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