Audience: Australian sole traders and small business owners across service, retail and trade businesses.
Scope note: This page is intentionally broad and works well as a category-level search target. It should internally link to more specific owner pages like pizza shop owners or tradies.
Intro
Small business owners can usually claim most expenses directly connected to earning business income, but only the business-use portion of mixed expenses and only with proper records. This is one of the best Phase 1 keywords because it can capture broad intent while also feeding internal links into niche-specific deduction pages.
Common deductions
- Rent, utilities, business insurance and other operating costs for the business premises.
- Bookkeeping software, invoicing tools, CRM subscriptions, website hosting and payment processing fees.
- Accounting, BAS and tax agent fees.
- Marketing and advertising costs such as social ads, flyers, design work and business cards.
- Wages, super, contractor payments and other labour costs that are properly documented and deductible under the rules.
- Interest on business finance and eligible bank fees.
Industry-specific deductions
- Vehicle costs for business trips, service calls, deliveries or supply runs, using the right record-keeping method.
- Home-based business expenses where part of the home is used as a place of business or for genuine business admin.
- Depreciating assets and capital expenses such as equipment, furniture, machinery and business-use computers.
- Industry licences, professional memberships and compliance costs.
- Eligible startup or setup costs depending on the facts and timing.
Hidden deductions
- Business-use portions of mobile plans, home internet and software bundles.
- Merchant fees, refunds processing costs and online marketplace fees.
- Training for employees and, in some cases, eligible business training or compliance education.
- Record-keeping tools and receipt capture apps.
What you can’t claim
- Private spending or the private portion of mixed expenses.
- Cash drawings or money you take from the business for personal use.
- Fines and penalties.
- The GST-inclusive amount when you are entitled to claim a GST credit.
- Capital assets in the wrong way or at the wrong time without checking the depreciation rules.
Tips to maximise your return
- Set up clean expense categories early so you can see where deductions are coming from each month.
- Do not wait until tax time to sort personal versus business use on vehicles, phones or home costs.
- Keep digital copies of tax invoices and reconcile bank feeds regularly.
- Review large purchases before year end because deduction timing can vary across operating expenses and capital assets.
FAQ
Can small business owners claim software and subscriptions?
Usually yes if the tools are used in running the business and earning assessable income.
Can I claim part of my home expenses for a business?
Often yes for the business-use portion, but the method and what you can claim depend on whether you truly have a place of business and on your structure.
Can I claim a vehicle used for both work and family use?
Yes, but only the business-use portion. Good records are essential.
Primary sources
- ATO business income, losses, deductions and concessions: https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions
- ATO business deductions: https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business/deductions?trk=public_post_comment-text
- ATO home-based business expenses: https://www.ato.gov.au/homebasedbusiness
- ATO deductions for depreciating assets and capital expenses: https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business/deductions/deductions-for-depreciating-assets-and-capital-expenses?sbnstartupsapril16=
General information only. Reviewed against ATO guidance accessed on 20 March 2026.
Related guides
If you want to compare similar claim categories, these guides are a useful next step: