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$5,500 tax deductions Aussies miss on tax returns: ‘Big difference’

The top 10 most overlooked tax deductions for self-employed Aussies have been revealed.

Tamika Seeto
·Finance Reporter
Updated ·2-min read

Aussies sole traders are missing out on thousands of dollars in tax deductions each year. With the cost-of-living continuing to bite, it's never been more important to make sure you are claiming everything you are entitled to.

There are more than 1.5 million sole traders in Australia who run their own businesses, including the likes of contract tradies, freelance creatives and small business owners. According to digital accounting service Hnry, they are missing out on more than $5,500 on average in unclaimed expenses each year.

Managing director Karan Anand told Yahoo Finance this came as sole traders were incurring thousands of dollars in business expenses each year.

Tax and Australian money
Aussie sole traders are being reminded not to forget about these tax deductions. (Source: Getty)

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“[Despite this], a third of them don’t claim everything they’re entitled to - putting it down to being unsure of what they can/can't claim, and not being bothered with the hassle,” Anand said.

“There are so many tax-deductible expenses that sole traders aren’t aware of - from marketing tools and virtual assistants, to surprising ones, which are applicable in certain instances, such as music subscriptions and sun protection.”

With thousands of dollars on the line, Anand told Yahoo Finance knowing what expenses were available and making sure these were lodged could make a “big difference” this tax time.

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Most sole traders are already claiming expenses for things like bank fees, subscription fees, equipment purchases and phone bills, but Hnry said there are a ton of expenses being overlooked.

Here are the top 10.

Includes subscriptions for SEO, email marketing and analytics.

Expenses related to hiring virtual assistants to help with admin tasks, customer service and other business functions.

Includes investments in recycling programs and eco-friendly office supplies.

The cost of providing product samples to potential clients or customers can be claimed as a marketing expense.

Ergonomic furniture and equipment like office chairs, desks and accessories can be claimed.

Along with recurring business subscriptions like software costs, online magazines and licensing fees, don’t forget to claim membership fees for industry-specific or professional associations.

You can also claim music subscription or equipment costs for certain business environments such as cafes or retail stores.

Expenses for professional headshots and promotional materials can also be claimed, according to Hnry.

Protective items like hats, sunglasses and sunscreen can be deducted for outdoor workers such as tradies.

Income protection insurance offers financial security in the event you are unable to work due to injury or illness. These premiums may be tax deductible too.

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