Sole Trader Tax Deductions & Tax Rate

Sole Trader Tax Deductions

As a sole trader there are many items you may claim as deductions to offset your operating expenses and reduce your taxable income.  In this article we will cover what you can and cannot claim as sole trader tax deductions, the sole trader tax rate, how to pay tax as a sole trader and more.  Being aware of this information will help you optimise your tax return!

Sole Trader Tax Deductions

What can a Sole Trader Claim on Tax?

The ATO allows both capital and operating expenses to be claimed as sole trader tax deductions. 

Operating expenses can include:

  • Advertising
  • Bad debts
  • Home office expenses or portion of rent
  • Bank charges
  • Motor vehicle expenses
  • Business travel
  • Education and training
  • Professional memberships
  • Licenses and registrations
  • Insurance
  • Interest