On an ABN, most costs of running the business can be deductible, but only with the records to back them up. Here's what usually counts.
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By the Nomo team · Last reviewed 24 September 2026
As a sole trader you can generally claim the costs of carrying on your business, as long as they relate to earning your business income and aren't private. You claim them in the business section of your individual tax return.
If something is part business, part private, like your phone or car, you claim only the business share. And the $1,000 standard deduction doesn't cover business income, so every business expense needs a record.
| Expense | Usually claimable if | Read more |
|---|---|---|
| Car | It's the business use, using cents per km or the logbook method | Cents per km, logbook |
| Business travel | It's travel for the business. The rules for travel from home differ from employees', so check the ATO | ATO motor vehicle |
| Home-based business | Running costs (fixed rate or actual), plus occupancy costs only if part of your home is a place of business | WFH deductions |
| Tools and equipment | Used for the business. Assets under $20,000 each can be written off in full from 1 July 2026 if turnover is under $10 million | ATO instant asset write-off |
| Phone and internet | The business share, or all of it for a separate business line | ATO operating expenses |
| Business insurance | Like public liability, professional indemnity or business vehicle insurance | ATO operating expenses |
| Tax and accounting fees | Preparing your tax return or activity statements | ATO business deductions |
| Advertising, software and subscriptions | Used for the business | ATO business deductions |
| Trade and professional memberships | Associations related to your business | ATO business deductions |
If you're registered for GST, you'll need a tax invoice to claim a GST credit on purchases over $82.50 including GST. Snap the whole tax invoice in Nomo, so it's there when you or your accountant need it. See the ATO's GST credit rules.
Keep receipts, invoices and other records for five years. For the car, keep a record of your business trips or a logbook. For a home-based business on the fixed rate, keep a record of the hours you work from home.
Nomo keeps the records side of it: business trips, receipts and the hours you work from home, ready to export for your accountant. It doesn't track your income or prepare your BAS. That's a job for your accounting software or your accountant.
Drives recorded during your work hours, swiped to business or personal.
Snap it and Nomo reads the merchant, amount and date.
Clock in and out, at the fixed rate.
Nomo is an Australian tax deduction and mileage/work kilometre tracking app for PAYG employees and sole traders.
Also on wages? The tax deduction checklist covers the employee side.
Generally, the costs of running your business that aren't private, as long as you have records.
Yes, the business use, using the cents per km method or the logbook method.
Running costs, using the fixed rate or actual cost method. Occupancy costs like rent or mortgage interest only if part of your home is set aside as a place of business.
From 1 July 2026, small businesses with turnover under $10 million can deduct eligible assets costing less than $20,000 each in full.
Not to business income. If you also earn wages, it can apply to the wage side.
No. Nomo keeps your trips, receipts and hours for you and your accountant. It doesn't track income or prepare BAS.
Yes. Nomo works on iPhone and Android.
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Records sorted, so tax time isn't.
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Start 14-day free trialBy the Nomo team · Last reviewed 24 September 2026. We check these pages against current ATO guidance and update them when the rules change.
General information only, not tax advice. Rules change and everyone’s situation is different, so check ato.gov.au or talk to a registered tax agent about your situation. Nomo is a record keeping app, not a registered tax agent.