Martial Artists: Small Business Tax Return Guide 2025
Punch your way through the tax season without copping a financial roundhouse to the face. If you run a dojo, teach classes, or throw a few demo kicks on weekends, this Gotax guide is your new training manual for claiming deductions and avoiding the tax office's traps.
What Can You Deduct and Why?
If you spend money to earn income from martial arts, it’s probably tax deductible. If you wouldn't have spent the money without your martial arts business, you're probably on the right side of the deduction dojo.
Repairs vs Maintenance vs Capital Improvements
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Repairs: Fixing a punching bag or a cracked dojo mirror? Deduct the full cost in the year you pay.
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Maintenance: Cleaning mats, oiling wooden weapons, repainting walls—fully tax deductible in the same year.
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Initial Repairs: Bought dodgy second-hand gear or a rundown dojo? Initial fixes aren’t instantly tax deductible—they get added to your cost base.
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Capital Improvements: Built a new training zone or upgraded flooring? That’s a big-ticket improvement. Depreciate your tax deduction over time.
Legal Fees
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Tax Deductible: Client contracts, unpaid invoices, dojo disputes.
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Not Tax Deductible: Buying or selling your biz? Legal costs here get added to your Capital Gains cost base.
Depreciation: Chop It Down Year by Year
Most business gear loses value over time, and so does your tax deduction power. Depreciation lets you claim that value drop bit by bit. If the item is under the instant asset write-off limit, lucky you—you may be able to claim it all at once.
Equipment & Uniforms
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Equipment: Gloves, dummies, wooden swords, mats—claimable. If you use them personally too, apportion the cost.
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Uniforms: They're fine - Tax deductible.
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Protective Gear: Mouthguards, groin guards, headgear—deductible if required for demos or teaching.
Clothing and Shoes
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Shoes: Only claim if protective or part of a compulsory, branded outfit. Everyday martial arts shoes? Nope.
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Branded Clothing: Business logo? Tick. The cost of printing the logo? Also tax deductible.
Vehicle Deductions
Use your car to:
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Travel to students’ homes or events
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Visit other dojos for demos
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Pick up gear
You can claim the business portion using:
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Cents per kilometre method
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Logbook method (12 weeks of tracking, then apportion the rest)
No deductions for home-to-dojo commutes.
Cost Base: For When You Sell the Dojo
Track everything you’ve invested:
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Purchase price of business or gear
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Fit-out and improvements
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Legal/accounting costs
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Business licences, etc.
Keep records for five years after selling or shutting down.
Common Misconceptions & Traps
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No, your personal gym fees aren't deductible
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Plain training gear = no deduction
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Entertainment? Even a client dinner isn’t deductible
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Claiming family wages? You need proper records and market rates
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All income—even cash—must be declared
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Big purchases? You can’t deduct the whole thing unless eligible for instant write-off
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Keep it clean: no deductions for fines or penalties
Real-Life Examples
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Repair: Fixing a cracked mirror in your dojo? Deduct it.
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Maintenance: Deep-cleaning mats? Deductible.
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Improvement: New tatami flooring? Depreciate it.
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Legal: Suing a student for unpaid fees? That one’s deductible.
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Car: Driving to a demo event? Claim the business %.
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Uniform: Gi with your logo for teaching? Deductible.
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Plain gear: Just for training? Sorry, not deductible.
10 Common Questions
Q1: Can I claim my own dojo membership?
A: Nope. It’s personal.
Q2: Martial arts shoes?
A: Only if protective or part of branded compulsory wear.
Q3: Driving to events or clients?
A: Yep—claim the business portion with records.
Q4: Website costs?
A: Setup and running costs? Totally tax deductible.
Q5: Mobile phone?
A: Business calls? Yes. Personal calls? No. Split it.
Q6: Courses or seminars?
A: Yes, if directly related to your current martial arts business.
Q7: Meals or supplements?
A: Only if travelling overnight for business.
Q8: Shared-use gear?
A: Apportion and only claim the biz part.
Q9: What records do I need?
A: All receipts, invoices, contracts, and logbooks. Use Deduction Grabber.
Q10: What happens if I sell gear or the biz?
A: You may owe tax on profit. Cost base helps reduce the hit.
Why GoTax is a Black Belt in Tax Returns for Martial Artists
Don’t let your tax return sweep you off your feet. GoTax makes small business tax returns fast, easy, and cheap for Aussie Martial Artists. Claim your deductions, avoid traps, and let our team of real humans (with tax nunchucks) review your return.
Keep Financially Fit with eCashbooks
Need to track dojo expenses, prep for BAS, and keep invoices sorted? eCashbooks is your virtual sensei. Stay organised, compliant, and ready for tax time with the simplest bookkeeping tool on the market.
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