Top 10 Tax Deductions for ABN Holders in 2025

Gotax Publishing – 8 October 2025

Don’t Miss Out on Your ABN Tax Deductions

If you’re a sole trader, freelancer, or contractor with an ABN, you’re entitled to claim a wide range of tax deductions that reduce your taxable income and increase your tax refund.

The problem? Too many ABN holders miss out because they don’t know what they can claim—or they’re worried about ATO compliance. That’s where Gotax comes in. We make it simple to claim every eligible tax deduction, while keeping you safe from ATO scrutiny.

Here are the top 10 ABN tax deductions you should know about in 2025, with real-world examples, compliance tips, and a step-by-step guide to maximising your claims.

1. Vehicle and Travel Expenses

If you use your car for business, you can claim:

• Cents per kilometre method – up to 5,000 km per year, no logbook required.
• Logbook method – claim the actual business-use percentage of all car costs (fuel, rego, insurance, servicing).
• Other travel costs – parking, tolls, and public transport for business trips.

Example: A rideshare driver logs 20,000 km in a year, with 70% business use. By keeping a logbook, they can claim 70% of fuel, insurance, and servicing costs.

Compliance tip: Keep a logbook for at least 12 continuous weeks to establish your business-use percentage.

2. Home Office Expenses

Running your business from home? You can claim:

• Electricity, internet, and phone costs
• Office furniture and equipment depreciation
• Cleaning and maintenance of your workspace

Example: A freelance copywriter works 30 hours a week from a dedicated home office. They can claim a portion of electricity, internet, and even the cost of their ergonomic chair.

Compliance tip: If you use the fixed rate method (67c/hour), keep a record of hours worked. If you use the actual cost method, keep receipts for bills and equipment.

3. Tools, Equipment, and Assets

Tradies, creatives, and contractors can claim:

• Tools, laptops, and devices used for business
• Immediate write-off for assets under the ATO threshold
• Repairs and maintenance costs

Example: A carpenter buys a $1,200 saw. Because it’s under the instant asset write-off threshold, they can claim the full amount as a tax deduction in the year of purchase.

4. Protective Clothing and Uniforms

• Safety boots, hi-vis gear, and protective equipment
• Branded uniforms required for your work

Example: A painter buys steel-capped boots and protective overalls. Both are fully deductible.

Compliance tip: Everyday clothes, even if you only wear them for work, are not deductible.

5. Phone and Internet Costs

• Business portion of your mobile and internet bills
• Software subscriptions and cloud storage

Example: A digital marketer uses their phone 60% for business. They can claim 60% of their mobile plan as a tax deduction.

6. Professional Fees and Insurance

• Tax agent fees (yes, your Gotax fee is a tax deduction)
• Business insurance premiums
• Professional association memberships

Example: A self-employed electrician pays $400 for public liability insurance and $99 for Gotax lodgement. Both are deductible.

7. Super Contributions

• Personal super contributions are deductible
• Boosts your retirement savings and lowers taxable income

Example: A contractor contributes $5,000 to super. They claim it as a tax deduction, reducing taxable income and saving tax now while building retirement wealth.

8. Training and Education

• Courses, workshops, and seminars directly related to your current business
• Industry certifications and skill upgrades

Example: A bookkeeper pays $1,200 for a cloud accounting course. Because it directly relates to their current work, it’s deductible.

Compliance tip: Courses for a new career (e.g. a plumber studying to become a chef) are not deductible.

9. Advertising and Marketing

• Website hosting and domain costs
• Online ads, flyers, and promotional materials
• Business cards and branding expenses

Example: A personal trainer spends $500 on Facebook ads and $200 on flyers. Both are deductible as business promotion costs.

10. Bank Fees and Interest

• Business account fees
• Interest on business loans or credit cards

Example: A sole trader pays $180 in business bank fees and $600 in loan interest. Both are deductible.

Step-by-Step: How to Claim ABN Tax Deductions with Gotax

1. Track your expenses – keep receipts, invoices, and digital records.
2. Separate business and personal – use a business bank account to make claims easier.
3. Choose the right method – e.g. logbook vs cents per km for car expenses.
4. Use Gotax prompts – our system asks about common ABN deductions so you don’t miss out.
5. Lodge online – Gotax checks your return for errors before it goes to the ATO.

Real-World Case Studies

• The Tradie: Ben, a plumber, claims tools, vehicle expenses, and protective gear. His tax refund increases by $2,300.
• The Freelancer: Sarah, a graphic designer, claims home office, software, and internet. Her tax refund jumps by $1,100.
• The Rideshare Driver: Ahmed, driving Uber full-time, claims fuel, servicing, and phone costs. His tax refund grows by $1,800.

eCashBooks

eCashbooks is more than just bookkeeping software—it’s a streamlined bridge between your business and the ATO. For business owners, it simplifies day‑to‑day record keeping by capturing income, expenses, and GST in real time, giving you clear visibility over cash flow and profit. For the tax man, it means clean, accurate, and compliant data that aligns with ATO reporting standards, reducing errors and the risk of audits. In short, eCashBooks keeps your books tidy, your tax obligations transparent, and ensures both sides—your business and the ATO—are working from the same reliable set of numbers.

FAQs

Can I claim personal expenses as ABN tax deductions?
No. Only expenses directly related to your business are deductible.

Do I need receipts for everything?
Yes. The ATO can ask for proof of any claim.

Can I claim my Gotax fee?
Yes. Tax agent fees are fully deductible.

What if I use my car for both business and personal use?
You can only claim the business portion, supported by a logbook or reasonable estimate.

Can I claim meals?
Only if you’re travelling overnight for business. Everyday meals are not deductible.

Final Thoughts: Maximise Your ABN Tax Refund

Every dollar counts when you’re running your own business. By claiming all eligible ABN tax deductions, you reduce your taxable income and increase your tax refund.

With Gotax, you’ll never miss a claim. Our ABN Tax Return service is built to make tax time simple, compliant, and rewarding.

Lodge smarter. Claim more. Use Gotax.

Mandatory Disclaimer

This blog is an information source only. Make sure you seek professional advice, like Gotax, before you act on its contents.