Sole trader — general tax deductions: what you can claim
What you can claim, what you cannot, and the records the ATO expects. Written in plain English and updated for the 2025–26 financial year.
Oscar says"Home office actual cost or 67c/hr, vehicle logbook, phone & internet work portion, tools, personal super contributions. Scan the receipt the day you get it and June takes care of itself."
What you can claim
- All business expenses directly related to income.
- Prepaid expenses up to 12 months in advance.
What you cannot claim
- Private use portion of any expense.
- Domestic travel.
Records you need to keep
Logbook, receipts for all expenses, super contribution notices. NOTE: Complete accurate records essential — ATO audits sole traders closely. A claim without a receipt or tax invoice behind it is a claim you may have to repay if the ATO asks.
Common questions
What records do I need to keep?
Logbook, receipts for all expenses, super contribution notices. NOTE: Complete accurate records essential — ATO audits sole traders closely. Keep them for five years from when you lodge.
Oscar already knows these rules
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