Guide · 10 min read · Australia · 2026 tax year
Every deduction Australian freelancers and sole traders can claim — with ATO rules for home office expenses, car costs, equipment, software, GST, and records.
A deduction must be directly connected to earning your assessable income. If an expense is partly private and partly business, claim only the business-use portion and keep records that show how you calculated it.
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Start 7-day free trialAustralian freelancers can generally claim expenses directly connected to earning assessable business income, including home office costs, software, equipment, business travel, professional fees, marketing, insurance, and payment processing fees. Mixed-use expenses must be split between business and private use.
Yes. Sole traders and freelancers can use the ATO fixed-rate method for eligible working-from-home hours or the actual-cost method if they keep detailed records. The right method depends on your hours, bills, and record keeping.
Yes, but only the business-use portion. Lower-cost items may be immediately deductible, while higher-cost assets are usually depreciated over their effective life unless a small business concession applies.
If you use your car for business travel, you can usually choose between the cents-per-kilometre method and the logbook method. Keep trip records showing date, purpose, and kilometres. Normal commuting is not deductible.
Most freelancers operating as a business should apply for an Australian Business Number. Clients may withhold tax at the top rate if you invoice without an ABN, and an ABN is typically needed for business registration and GST.
You generally need to register for GST once your GST turnover reaches A$75,000 in a 12-month period. Below that, registration is optional, but once registered you must charge GST and lodge BAS.
General guidance, not personalised tax advice. Rules and thresholds change — verify against the ATO and speak to a registered tax agent for your situation.