Most sole traders leave money on the table at tax time. They claim the obvious things but miss legitimate deductions that can meaningfully reduce their tax bill. Here's everything you can claim as an Australian sole trader in 2026.
Key Rule
To claim a deduction, the expense must be directly related to earning your business income. You can't claim personal expenses, and if something is partly personal and partly business, you can only claim the business portion.
Fixed rate method
70 cents per hour worked from home (2025-26). Covers electricity, internet, stationery, and phone usage.
Actual cost method
Claim the actual proportion of rent/mortgage interest, utilities, and internet based on the percentage of your home used exclusively for work.
Equipment in home office
Desk, chair, monitor, printer — claimable if used for work. Depreciation applies to items over $300.
Cents per kilometre
88 cents/km in 2025-26, up to 5,000km. Simple — no logbook needed. Just keep a record of trips.
Logbook method
For larger claims. Keep a logbook for 12 weeks showing business vs personal use. Claim that percentage of all vehicle costs.
Parking & tolls
Fully claimable for business travel. Keep receipts.
Public transport & flights
Fully claimable for business travel.
Instant asset write-off
Eligible businesses can immediately deduct the full cost of assets. Check the current threshold at ato.gov.au.
Laptop, phone, tablet
Claimable for the business-use percentage. If you use your phone 60% for business, claim 60%.
Software subscriptions
Invoicing software, accounting tools, project management apps — all deductible.
Tools and equipment
Tradies can claim work tools. Items under the instant asset write-off threshold are fully deductible immediately.
Accountant and bookkeeper fees
Fully deductible.
Legal fees
Deductible if related to business operations (contracts, disputes).
Professional memberships
Industry associations, professional body memberships related to your work.
Business insurance
Public liability, professional indemnity, income protection — all deductible.
Bank fees
Fees on your business bank account are fully deductible.
Interest on business loans
Interest on money borrowed for business purposes is deductible.
Personal super contributions
Deductible up to the concessional cap ($30,000 in 2025-26). Lodge a Notice of Intent to Claim with your fund before lodging your return.
The ATO requires records to be kept for 5 years. The easiest approach: snap a photo of every receipt immediately and upload it to your accounting software or a cloud folder. If you're ever audited, organised records are your best defence.
Track income and expenses with SAB Account AI
Categorise your expenses, track GST, and stay tax-ready all year. $9/mo for sole traders.
Start free trialYes. Sole traders can claim home office expenses using either the fixed rate method (70 cents per hour worked from home in 2025-26) or the actual cost method. You must keep records of hours worked from home.
Yes, for business use only. You can use the cents per kilometre method (88 cents/km in 2025-26, up to 5,000km) or the logbook method for larger claims. Personal travel cannot be claimed.
Yes. Personal super contributions are tax deductible for sole traders. You need to lodge a Notice of Intent to Claim with your super fund before lodging your tax return. Contributions up to the concessional cap ($30,000 in 2025-26) are deductible.
The ATO requires you to keep records for 5 years. This includes receipts, invoices, bank statements, and logbooks for vehicle claims. Digital records are accepted — store them in accounting software or a cloud folder.