Freelancer Business Tax Guide 2025: Complete Business Schedule

Published: August 2025

Freelancing means freedom… and tax paperwork. But don’t sweat it—we’re going full throttle into the Business Schedule for the 2025 tax year. This guide covers what to declare, what to claim, what to avoid, and how to keep the ATO off your back.

Who Needs to Complete the Business Schedule?

• Freelancers, sole traders, and contractors: If you earn income through an ABN from services, gig work, or self-employment, this one’s for you.

• Side hustlers: Selling designs on Etsy? Delivering food on weekends? That’s business income.

• NOT employees: If your only income is from PAYG wages, skip the business schedule.

Pro tip: If you’re unsure whether you’re in business, use the ATO’s “Are you in business?” tool.

What Counts as Business Income?

• Client payments: Every invoice, every gig. That $150 voiceover job? Declare it.

• Gig platforms: Uber, Airtasker, Fiverr, OnlyFans—yep, that’s income.

• Cash-in-hand: That $500 cash job? Still income. The ATO knows.

• Trade swaps: Got a free laptop in exchange for your service? Declare its market value.

• Crypto payments: Declare the AUD value when received.

• Overseas work: Yes, it’s income even if it’s never in an Aussie bank.

What Expenses Can You Claim?

• Home office costs: Claim part of electricity, internet, and even rent if dedicated space.

• Tech gear & software: Computers, phones, Canva, Adobe—if it earns you money, it’s claimable.

• Marketing: Website costs, online ads, flyers—all tax deductible.

• Education & training: Industry courses, webinars, and even business books.

• Travel: Going to client sites? You can claim kilometres, flights, accommodation.

• Vehicle use: Logbook or cents/km method—just don’t claim your Uber to the pub.

Important: Only claim the business portion. If it’s 70% work-related, you claim 70%.

Industry-Specific Deductions

• Tradies: Tools, protective gear, licencing fees.

• Designers: Software, digital sketch pads, portfolio sites.

• Writers: Research materials, ergonomic chairs.

• Fitness trainers: Equipment, uniforms, room hire.

Home Office: Fixed vs Actual Method

• Fixed rate (67c/hr): Easiest method. Covers power, internet, phone.

• Actual cost method: You work out percentages for each expense. More work, but might get you more.

Example: 20 hours/week x 48 weeks = 960 hrs = $643.20 claim (plus depreciation).

Car & Travel Expenses

• Cents/km method: Up to 5,000 km @ 85c/km in 2025.

• Logbook method: Calculate your business-use percentage.

• Travel: Flights, hotels, Ubers—for business only.

Don’t claim: Trips from home to regular workplace.

Instant Asset Write-Off

• Assets under $20,000 (ex GST): Full deduction in the same year.

• Assets over $20,000: Goes into depreciation pool (15% year one, 30% year two+).

Examples:

• Laptop for $2,500: Full deduction.

• Van for $25,000: Depreciated.

Super Contributions

• Voluntary super is deductible: Cap of $30,000 in 2025.

• Pay before 30 June and lodge intent to claim.

GST Registration

• Register if turnover is $75,000+

• Charge GST, lodge BAS, and claim input credits.

• Voluntary registration is okay and can benefit B2B freelancers.

PAYG Instalments

• ATO might request quarterly pre-payments of expected tax.

• Avoids a big surprise tax bill.

Record-Keeping

• 5 years of records: Receipts, invoices, bank statements.

• Use accounting software or eCashBooks for a simpler alternative.

• Logbook for cars, diary for home office, Deduction Grabber handles all your log books.

ATO Red Flags

• 100% business use on car or phone (almost always false).

• Massive deductions for your industry.

• Not declaring crypto or cash gigs.

• No records = risk of audit.

Tricky Scenarios

Q: Paid in crypto? A: Convert to AUD at time received—declare that.

Q: Side job plus business? A: Report PAYG separately. Business income goes in Business Schedule.

Q: Lost receipts? A: Use bank statements or supplier invoices. Best to check before claiming.

Q: Claiming Netflix? A: Only if your income depends on it (e.g., film reviewer).

Bottom Line

Nail your business schedule, declare income properly, claim what’s fair, and keep receipts like your refund depends on it—because it does. GoTax is built to make it easy, fast, and as painless as tax can possibly be.

Start now with GoTax: https://www.gotax.com.au/start-now