What Tax Deductions Can I Claim as a New ABN Holder?

Most new ABN holders underestimate how many tax deductions they’re entitled to claim.

If you spent money to help you earn ABN income — or to get set up so you could earn income — there’s a good chance the expense is deductible. This applies even if your business hasn’t fully taken off yet.

The key rule is simple: was the expense connected to earning your ABN income?
If yes, it’s usually claimable. If not, it’s personal and shouldn’t be included.

Common Tax Deductions for New ABN Holders

As a new ABN holder, you can typically claim deductions for expenses such as:

• Tools and equipment used for work

• Vehicle and travel costs related to business use

• Phone and internet used for business

• Software and app subscriptions

• Home office costs

• Advertising and website expenses

• Training or skill-building courses

• Safety gear and work supplies

These expenses reduce your taxable ABN income, which in turn reduces the tax you pay.

What the ATO Actually Cares About

The ATO isn’t looking to catch you out for claiming legitimate expenses. They focus on one thing: connection to income.

If an expense helped you earn money, attract clients, operate your business, or prepare to earn income, it usually qualifies. If it’s personal or private, it doesn’t.

Good record-keeping is what separates legitimate claims from problems later on.

Why New ABN Holders Miss Deductions

Many first-year ABN holders miss deductions because they:

• Aren’t sure what counts

• Didn’t keep receipts

• Mixed personal and business spending

• Didn’t realise setup costs can be deductible

Missing deductions can be the difference between a tax bill and a manageable outcome.

How to Claim Deductions Properly

To claim deductions correctly, you need:

• Records or receipts for expenses

• Clear separation between personal and business use

• Accurate reporting in your Business Schedule

Using a guided system helps ensure nothing is missed and nothing incorrect is claimed.

Next Steps for ABN Holders

Understanding your deduction entitlements early makes a big difference at tax time. Keeping records and claiming expenses correctly reduces stress and avoids surprises.

If you’re lodging an ABN tax return and want to claim deductions properly, you can complete everything through GoTax here:
https://www.gotax.com.au/small-business-tax-return