Tax Deductions for Contractors
Tax deductions for contractors, freelancers, and IT contractors
Tax Deductions for Contractors - Overview
As a contractors, you can claim various work-related expenses to reduce your taxable income. This guide covers all available deductions, including requirements and examples to help you maximize your tax refund.
Important: Keep receipts and records for all deductions. The ATO may request proof of expenses, so maintain detailed records throughout the financial year.
Available Deductions
Click on any deduction to see detailed information, examples, and requirements
Home Office
Home Office Expenses
Portion of home expenses if you work from home as a contractor
Office Furniture and Equipment
Office furniture, desks, chairs, and storage used for home office
Equipment & Technology
Computer Equipment and Software
Computers, laptops, monitors, and software used for contracting work
IT Tools and Subscriptions
Development tools, cloud services, and software subscriptions for contractors
Work-Related Expenses
Phone and Internet Expenses
Portion of phone and internet costs used for contracting work
Vehicle Expenses
Car expenses for work-related travel (not home to usual workplace)
Work-Related Travel
Travel expenses for work-related trips and client visits
Professional Development
Professional Development and Training
Courses, training, and education to maintain or improve contracting skills
Professional Memberships
Membership fees for professional associations and industry groups
Business Expenses
Professional Insurance
Professional indemnity insurance and public liability insurance
Accounting and Tax Agent Fees
Fees paid to accountants and tax agents for business tax returns and BAS
Marketing and Website Costs
Costs of marketing your contracting services and maintaining a website
Bank Fees and Merchant Charges
Bank account fees and merchant fees for accepting payments
Most Common Deductions for Contractors
Home Office Expenses
Portion of home expenses if you work from home as a contractor
$1,000-$5,000 annuallyComputer Equipment and Software
Computers, laptops, monitors, and software used for contracting work
$1,000-$5,000 annuallyPhone and Internet Expenses
Portion of phone and internet costs used for contracting work
$500-$2,000 annuallyProfessional Development and Training
Courses, training, and education to maintain or improve contracting skills
$500-$3,000 annuallyVehicle Expenses
Car expenses for work-related travel (not home to usual workplace)
$1,000-$5,000 annuallyProfessional Insurance
Professional indemnity insurance and public liability insurance
$500-$3,000 annuallyAccounting and Tax Agent Fees
Fees paid to accountants and tax agents for business tax returns and BAS
$200-$1,500 annuallyMarketing and Website Costs
Costs of marketing your contracting services and maintaining a website
$300-$2,000 annuallyFrequently Asked Questions - Contractors Tax Deductions
Still have questions?
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