What Expenses Can ABN Holders Claim on Tax?
If you have an ABN in Australia, you can claim tax deductions for expenses directly related to earning your business income. This includes tools, vehicle use, software, home office costs, and other running expenses — but only the work-related portion.
If the expense helps you generate income, it’s generally deductible. If it’s personal, it’s not. That sounds simple, but this is where most ABN holders get it wrong — either missing legitimate tax deductions or claiming things they shouldn’t.
What ABN Holders Can Claim
| Expense Type | Tax Deductible? | Notes |
|---|---|---|
| Tools & Equipment | Yes | Immediate or depreciated |
| Vehicle Expenses | Yes (partial) | Work-related use only |
| Software & Subscriptions | Yes | Fully deductible if business-related |
| Home Office Costs | Yes | Based on business use |
| Phone & Internet | Yes (partial) | Apportioned for work use |
| Insurance | Yes | Income protection may be partial |
| Training | Yes | Must relate to current business |
GoTax is an online tax return system designed for small business owners, freelancers, and ABN holders who want a fast, simple, and accurate way to complete their tax return.
The Core Rule: Work-Related = Deductible
There’s one rule that drives everything.
If the expense is incurred while earning your income, it’s deductible.
If it’s private, it’s not.
Sounds obvious. But here’s the issue — most expenses are not 100% one or the other.
They sit somewhere in the middle.
Tools and Equipment
If you buy tools to do your work, they’re tax deductible.
Lower-cost items can be claimed immediately.
Higher-cost items are claimed over time.
Example:
- $150 tool → immediate deduction
- $2,500 equipment → depreciated
The mistake? People either:
- don’t claim at all
- or claim everything incorrectly in one year
Vehicle Expenses
If you use your car for business, you can claim a portion of your expenses.
This includes:
- Fuel
- Servicing
- Insurance
- Registration
But here’s the line most people cross:
Driving from home to your regular place of work is not deductible.
That single misunderstanding causes more incorrect claims than anything else.
Software and Subscriptions
If you’re paying for tools to run your business, they’re deductible.
Examples:
- Accounting software
- Industry apps
- Project tools
This is one of the easiest deductions — and one of the most overlooked.
Home Office Costs
If you run your business from home, part of your household costs can be claimed.
This includes:
- Electricity
- Internet
- Phone
Individually small. Collectively meaningful.
Phone and Internet
You can’t claim the full bill unless it’s 100% business use.
You need to apportion.
Most people either:
- don’t claim it
- or overclaim it
Both are wrong.
Insurance
If the insurance relates to your business or income, it’s generally deductible.
Examples:
- Public liability
- Professional indemnity
- Income protection (partially deductible)
Training and Education
If it improves your current income — deductible.
If it’s for a new career — not deductible.
That distinction matters more than people think.
What You Cannot Claim
This is where most problems start.
You cannot claim:
- Everyday clothing
- Personal meals
- Travel to your normal work location
- Private expenses
Trying to push personal costs into business deductions is where audits begin.
Immediate Deduction vs Depreciation
| Type | Treatment |
|---|---|
| Low-cost items | Claimed immediately |
| High-cost assets | Claimed over time |
The biggest issue isn’t missing big purchases — it’s ignoring the small ones that add up across the year.
Example: Missed ABN Deductions
An ABN contractor earning $85,000:
- Didn’t claim software
- Missed vehicle usage portion
- Ignored small tools
After reviewing:
- +$3,500 in tax deductions
That’s not aggressive claiming. That’s just doing it properly.
Record Keeping Is Everything
If your records are poor, your tax deductions will be too.
Using something like:
https://www.ecashbooks.com.au/
…means:
- Expenses are tracked in real time
- Categories are clean
- Reports are ready
No guessing. No stress.
If You’re Guessing Your Deductions
You’re either:
- leaving money on the table
- or creating risk
There’s no upside to guessing.
Related Deduction Guide
If you want a full breakdown of what you can claim, see:
https://www.gotax.com.au/abn-tax/small-business-tax-deductions-australia
How GoTax Makes This Easy
GoTax guides you through your tax deductions step-by-step.
- Built for ABN holders
- Prompts based on your business type
- Reviewed by registered tax agents
- Fixed price of $140
Start your online tax return here:
https://www.gotax.com.au/
FAQ
What expenses can I claim with an ABN?
Tools, vehicle expenses, software, home office costs, phone, internet, insurance, and training.
Can I claim my car with an ABN?
Yes — but only the work-related portion.
Are all tools tax deductible?
Yes — either immediately or over time depending on cost.
Do I need receipts for deductions?
Yes. Without records, deductions can be denied.
What Now
Most ABN holders don’t have a deduction problem — they have a tracking problem.
Fix that, and everything else becomes easier.
Signup to GoTax and not only get your Tax return done, you can also ask as many questions as you like and get informed answers. You have access to the equivalent of a Tax Einstein - that is our very own D.e.r.e.k as well as the best credentialed Tax Accountants around.
https://www.gotax.com.au/small-business-tax-return
About This Article
Author: GoTax Editorial Team
Topic: Australian Tax Returns and ABN Tax Deductions
Audience: Small Business Owners, ABN Holders, Contractors
Purpose: Help users complete an online tax return Australia and maximise tax deductions
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