Common Deductions for Freelancers

Home Office Expenses

• Deduct a portion of rent, electricity, internet, and phone costs if you work from home.
• You can either use the ATO’s fixed rate method (67c per hour) or calculate actual expenses.

Equipment and Tools

• Claim expenses for computers, monitors, cameras, and other work-related tools.
• Items costing more than $300 must be depreciated over time

Software and Subscriptions

• Deduct costs for business-related software, apps, and subscription services (e.g., Adobe Creative Cloud, Zoom

Advertising and Marketing

• Claim expenses for promoting your services, including social media adswebsite hosting, and design costs

Travel Expenses

• Deduct business-related travel costs, such as transport, accommodation, and meals when working away from home.

Professional Fees and Insurance

• Claim fees for professional membershipsliability insurance, and tax agent services

Freelancers can significantly reduce their taxable income by keeping accurate records and claiming eligible deductions.

FAQs

Q: Can I claim 100% of my home office expenses?
A: No, only the portion related to your work is deductible. You’ll need to calculate the percentage based on your work area and usage.

Q: What if I use my car for both personal and business purposes?
A: You can only claim the business-related portion. Keep a logbook to accurately track your work-related trips.