What Can Salon Owners Claim on Tax in Australia?

Who this page is for: Hair salon owners, beauty salon owners, owner-managers and chair-rental operators in Australia.

Last reviewed: 2 April 2026

Quick answer

Salon owners may be able to claim many business costs such as stock, merchant fees, booking software, rent, utilities, salon equipment, insurance and the business-use share of mixed expenses. Private grooming, owner drawings, private use and weak record keeping are still common problem areas.

You usually need to have paid the cost yourself or through the business.
The expense should relate directly to earning income or running the salon.
Only the business-use share is usually claimable for mixed-use items.
Records matter just as much as the expense category.

For salon owners, the biggest tax-time wins usually come from clean bookkeeping and separating private use properly, not from trying to stretch weak claims.

Intro: who this guide is for

Salon owners often have a mix of recurring operating costs, staff or contractor arrangements, stock purchases and occasional equipment spending. That means the real tax question is usually not "is there anything else I can claim?" so much as "have I recorded the business costs cleanly enough to support them?"

Salon owners often need broader business-cost guidance than worker-focused barber, hairdresser and beauty-therapist pages provide, especially around rent, software, stock, equipment and mixed-use admin costs.

Common deductions salon owners may be able to review

Hair and beauty products, disposable supplies, towels, gloves and other stock or consumables bought for the salon business.
Merchant fees, booking systems, POS software, accounting software, website costs and advertising tied to running the salon.
Rent, utilities, insurance, cleaning and other premises costs for the salon.
Chairs, basins, dryers, sterilising equipment, tablets and other equipment used in the business, subject to the current asset rules.
Phone, internet and home-based admin costs to the business-use extent where the owner also works from home on rosters, stock ordering or bookkeeping.
Motor vehicle costs for genuine business trips such as supply runs or banking trips where the method and records support the claim.
Wages, super and contractor payments that are genuinely business costs and are recorded correctly, noting that payroll and withholding rules still matter.

What usually is not claimable

Personal haircuts, colour, cosmetics, beauty treatments or grooming costs for yourself.
Private products, family spending or personal shopping run through the salon.
Owner drawings or personal transfers taken out of the business.
The private share of a phone, vehicle, internet service or home expense.
Fines, penalties or cash spending that is not supported by proper records.

Sole trader, company or chair-rental model differences

Sole traders usually claim eligible business costs through the business records and still need to remove private use.
Company or trust owners still need clean records because drawings, reimbursements, wages and private use are handled differently from simple sole-trader spending.
Chair-rental or room-rental salon models can blur the line between salon-owner costs and each operator’s own expenses, so keep clear records of who actually paid each cost.

Record-keeping and evidence requirements

Keep tax invoices and receipts for stock, rent, utilities, software, merchant fees, advertising, equipment and repairs.
Keep payroll, super and contractor records in a way that matches the actual business structure.
Keep records showing the business-use share of mixed expenses such as phones, internet, vehicles or home-based admin costs.
Record what larger equipment purchases were, when they were first used and how they were paid for.

Common mistakes

Claiming personal grooming or appearance costs because image matters in the salon.
Mixing salon stock with private products or family use.
Treating owner drawings like deductible business expenses.
Claiming vehicle, phone or internet costs without a supportable business-use method.
Letting chair-rental, contractor or staff costs blur together without clear records of what the salon actually paid.

Frequently asked questions

Can salon owners claim stock and salon products?

They may be able to where the products are genuinely bought for running the salon business and the records support the purchase.

Can I claim salon chairs, basins and dryers?

Possibly, but larger equipment purchases still need to be treated under the current asset rules and supported by proper records.

Can salon owners claim their own haircuts or beauty treatments?

Usually not. Personal grooming costs are generally private even if appearance matters in the salon industry.

Internal links and next steps

Use these if you want a related occupation page, a broader small-business rule page or a matching support guide.

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Review note, sources and disclaimer

Reviewed by: Australia Tax Deductions editorial team

Last reviewed: 2 April 2026

How this page is framed: This page is written in plain English, anchored to official ATO guidance and designed as educational information only.

Methodology: See the Editorial Policy and Review Methodology pages for how the site handles source checking and updates.

Primary references

General educational information only. Tax outcomes depend on your circumstances, records, business structure and the current ATO rules. Check the latest official guidance or speak with a registered tax professional before acting on any deduction claim.