ABN Tax Deductions Guide — What You Can Claim and How To Get It Right

If you’ve got an ABN, congratulations — you’ve just unlocked one of the greatest perks in Australia:  business tax deductions.

This guide explains exactly what you can claim, why you can claim it, and how to avoid the classic “Oops, I forgot about receipts for six months” problem. If you want to keep your tax bill low and your refund high, this is your new favourite page.

We’ll also show you how GoTax handles the deduction side inside your ABN tax return, and how our sister product eCashBooks keeps your records clean all year without needing a bookkeeping degree.

ABN holders can claim tax deductions for expenses related to earning their income, including tools, equipment, software, home office, phone, internet, training, advertising, travel, and startup costs. You’re taxed on profit, not turnover, so claiming deductions reduces your taxable income. To claim correctly you need good records, digital receipts, and a clear link between the expense and your ABN income. GoTax walks you through every deduction category inside the tax return. eCashBooks helps small operators track income, expenses and prepare for BAS or end-of-year tax without bookkeeping skills.

Section 1: What Counts as a Tax Deduction for an ABN Holder?

A tax deduction is simply:

“An expense you paid to help you earn ABN income.”

It must be:

• connected to your work

• not private

• not capital in nature unless depreciated

• provable with a record

If the cost helps you do your job, run your business, or generate income — you can usually claim it.

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

Section 2: You Only Pay Tax on Profit, Not Income

This is the entire game.

Your tax is based on:

Income

minus

Tax-deductible expenses

= Profit (the part you pay tax on)

Miss deductions?
Profit goes up → so does your tax bill.

Claim them properly?
Profit goes down → tax goes down.

This is why deductions matter.

Section 3: The Most Common ABN Tax Deductions Explained

Tools & Equipment

Tradies, creatives, drivers, contractors — tools and gear are often your biggest deductions.

You can usually claim:

• drills, cameras, laptops

• specialist gear

• replacements

• repairs

Small items may be fully deductible. Larger assets depreciate.

Software & Subscriptions

Anything required to do your work counts:

• editing software

• creative platforms

• invoicing tools

• design apps

• eCashBooks (yes — it’s deductible)

Phone & Internet

Claim the portion used for ABN income.

Fair and reasonable is the rule — not “I claimed 100% because I text clients sometimes.”

Home Office Expenses

Two methods:

• fixed-rate

• actual expenses

If part of your home is used to run your ABN, you’re allowed a deduction.
GoTax tells you which method fits best.

Vehicle & Travel Costs

If you travel for work or use your car for ABN income:

• cents-per-km

• logbook method

• travel expenses

• parking & tolls

Not deductible: the drive from your bed to your first job of the day.

Advertising & Marketing

Website hosting, domain names, brand design, ads — all deductible.

Training & Education

Courses that help you earn more from your ABN are deductible.
Courses unrelated to your work are not.

Startup Costs

Bought things before you started earning income?
Yes — you can claim them.

See: Can I Claim Startup Costs for My ABN?

Section 4: The BAS Question — Do You Need It?

A BAS is only required if you are registered for GST.

You must register for GST if:

• You earn over $75,000

• You drive rideshare (mandatory day one)

Otherwise — no BAS, no quarterly paperwork, no overwhelm.

But if you ever do GST or BAS:

This is where eCashBooks becomes critical.
It handles:

• income tracking

• expense categorising

• GST tagging

• BAS-ready reports

…without needing to know what “double-entry bookkeeping” means.

See the First-Year ABN Guide or Do I Need GST Under $75,000?

Section 5: The Secret to Claiming Deductions Correctly: Clean Records

The ATO doesn’t need a filing cabinet.
They need proof.

You can use:

• receipts

• invoices

• screenshots

• bank statements

• digital copies

• photos of receipts

See: What Receipts Do I Need to Keep for My ABN?

But here’s the real trick…

Most ABN problems aren’t tax problems.

They’re record-keeping problems.

This is where we introduce the sister product the right way…

Section 6: How eCashBooks Keeps Your Deductions Clean (and BAS Ready)

eCashBooks exists for one reason:

“To stop small operators drowning in spreadsheets, lost receipts, and year-end panic.”

Most ABN holders don’t need Xero or MYOB — they need something simple, fast, and idiot-proof.

eCashBooks lets you:

• track income

• record expenses

• scan receipts

• categorise deductions

• prepare BAS (if needed)

• print or send tax reports directly to GoTax

All with zero bookkeeping experience.

It is the perfect partner to:

• the ABN Deductions Pillar

• the Side-Hustle ABN Tax Guide

• and the GoTax ABN Tax Return

Whenever deductions matter — eCashBooks keeps it clean.

Strategic link placement approved.

I’ll include the link as:
eCashBooks Small Business Tool
(Link to: https://www.ecashbooks.com)

Section 7: How GoTax Helps You Claim Every Deduction Inside Your Return

Inside the GoTax ABN Tax Return, we prompt you with every category:

• Business expenses

• Home office

• Tools

• Assets

• Travel

• Software

• Startup

• Subscriptions

You don’t need tax knowledge — the system asks the questions and calculates it automatically.

This is why GoTax + eCashBooks is the simplest combo for ABN users in Australia.

One keeps records clean all year.
The other turns them into tax savings.

Section 8: Who This Guide Is For

This pillar is designed for:

• new ABN holders

• side hustlers

• delivery riders

• creators

• consultants

• contractors

• tradies

• early-stage business owners

• anyone preparing for a BAS

• anyone who doesn’t keep receipts well

Basically: everyone who wants to stop guessing and start claiming.

Section 9: FAQs

What deductions can I claim with an ABN?

Anything used to earn your ABN income — tools, software, home office, phone, travel, supplies.

Do I need receipts for everything?

You need proof — receipts, statements, emails, photos.

What if I didn’t keep receipts?

Bank statements can work, depending on the expense.

Can I claim costs from before I started?

Yes — startup costs are deductible.

Do I need a bookkeeping system?

Not legally — but eCashBooks prevents chaos and helps BAS/tax.

Do I need GST?

Only over $75k or if you drive rideshare.

Section 10: Gotax's Final Word on Deductions

Most people don’t claim correctly because they think they need a finance degree.
You don’t.

You just need:

• simple explanations

• clean records

• the right tools

• a tax system that speaks human

That’s GoTax.
And eCashBooks is the sidekick that keeps everything tidy.

If you want the simplest ABN tax setup in Australia, you’re staring at it.

Start your return here:
GoTax ABN Tax Return

Keep records clean here:
eCashBooks Small Business Tool