Work-related clothing expenses
You can claim a deduction if you are wearing a uniform that has your company logo on it. Clothing without a logo (such as general fitness attire) and your sports shoes are not deductible. If you are doing outdoor classes, you would be able to claim the costs of sun protection gear, such as sunglasses, sun hats, and sunscreen.
Work Related Tools/Equipment
You can claim equipment/tools such as dumbbells, treadmills, resistance bands or other training equipment. If any individual equipment costs more than $300, you would have to calculate its decline in value (Depreciation) over the expected life of the asset.
If you are a Sole Trader, you can claim the full amount of equipment instead of depreciating it if they are below $30,000 and you bought them prior to 12 March 2020. The threshold increases to $150,000 for assets bought between 12 March 2020 and 30 July 2020.
Any higher costing equipment will have to be depreciated.
If you use your phone or home internet to contact clients or use it as part of your training program (i.e. filming), you can claim a percentage proportion of your phone bill that you used for your work.
If you had purchased any stationery, i.e. Paper, Pens, Clipboards for your work, these are also deductible.
Motor vehicle expenses
You can claim the Motor vehicle expenses. if you need to travel from different client sites or gym locations. Any travel from your home to these locations are not deductible, unless your home is a primary place where you train clients, and you are travelling to another work related location.
There are two options to calculate this expense:
Cent per KM method: You can claim up to 5,000 business km for 68 cents/km in your 2018-2019 tax return. This option does not require a written evidence.
Logbook method: You can claim the percentage of most car expenses. However, you will need an official vehicle logbook stating for a 12-week period of the beginning and ending odometer reading. This will be used as a representation of your travel throughout the whole year and determine the percentage of motor vehicle expenses that you can claim.
Any insurance expenses that you incur for your business such as public liability or income protection are deductible. Personal insurance such as TPD and Life insurance are not deductible.
Any donations made to eligible charities of more than $2 are deductible, so keep the receipts if you do donate to any organisations!
Any fees that you incur to maintain your business account or for payment gateways are deductible.
Marketing and Advertisement Fee
If you incur costs in advertising your services or pay for marketing costs, these are also deductible.
License and Registration Fees
If you are required to have specific checks done, i.e. Working with Children’s Check, Police Clearance, etc. or have to be a member of an organisation to train clients, these are all deductible expenses. Do note that gym memberships are not deductible.
Any accounting fees (including using a Tax Agent) are deductible so not only do we provide you these tips, we can help you do your taxes and claim this expense as deductible as well!