An Australian creator in business can deduct an expense that was for the business, only to the extent of its business use, and only with a record to prove it; those are the three golden rules on the ATO's business deductions page. In practice that covers cameras, lighting, editing software, studio running costs at home, the business share of phone and internet, and trips taken mainly for content work. Everyday clothing, the private share of anything you also use personally and the holiday days of a trip are where the ATO's own pages draw the line.
The tests every claim has to pass
The same ATO page says most expenses incurred in carrying on a business are deductible if they directly relate to earning assessable income, that an expense with a private or domestic purpose must be reduced by that share, and that some costs, such as fines, are never deductible. You cannot also deduct the GST in a purchase if you claim it as a GST credit on your BAS. If you earn personal services income and the PSI rules apply, they limit what you can claim.
Status matters before any of this. The ATO's new content creator guide lets a creator in business, and a creator earning income without being in business, claim eligible deductions, but expenses for a genuine hobby are not deductible. If you have not worked out which group you are in, the scorecard in our guide to whether creators need an ABN helps.
Timing is the other half. Operating expenses such as software subscriptions are generally claimed in the year you incur them, which the ATO says is when you have a legal obligation to pay, whether or not an invoice has arrived. Capital items such as cameras and computers are generally claimed over time as they decline in value, unless a small business write-off applies.
Deduction worksheet
Copy this into a spreadsheet and fill in the private-use column for every mixed-use item before you total anything. The column is where most of the work, and most of the risk, sits.
| Expense | How it is claimed | Private-use share (you enter) | Evidence to keep |
|---|---|---|---|
| Cameras, lenses, lights, microphones | Depreciating assets; small businesses using simplified depreciation may write off each asset under the limit on the ATO's write-off page | Share of use outside content work | Tax invoice, date first used, usage notes |
| Computer or editing machine | Capital expense claimed over its effective life or written off, business portion only | Hours of personal browsing, gaming or study | Invoice and a representative usage log |
| Editing, design and scheduling software | Operating expense in the year incurred, per the ATO's digital products page | Any personal projects on the same plan | Subscription invoices |
| Phone and internet | Business share of calls, data and internet fees; not claimed again if you use the fixed rate method, which already covers them | Personal calls, streaming and household use | Itemised bills and your apportionment method |
| Studio running costs at home | Actual cost, fixed rate per hour or floor area method, as set out on the ATO's home-based business page | Household living costs, excluded entirely | Hours log for the whole year, bills, floor measurements |
| Rent or mortgage interest, rates, home insurance | Occupancy expenses, only if the area has the character of a place of business | Floor area outside the studio and time it serves home life | Floor plan, photos, proof of exclusive use |
| Props, backdrops and set dressing | Operating expenses; the ATO's operating expenses list includes small-value items costing $100 or less | Any later use around the house | Receipts and the posts they appear in |
| Make-up and products featured in tutorials | Deductible when used only in the content, apportioned when also used personally | Your own off-camera use of the same products | Receipts and a note of personal use |
| Costumes and specialised outfits | The business list names corporate wardrobes, uniforms, occupation-specific and protective clothing | Whether it could pass as ordinary wear | Receipts and photos showing why it is not everyday clothing |
| Business travel | Flights, accommodation, hire cars and fares, plus meals when away overnight, for the business portion of the trip | Holiday days, sightseeing, companions | Itinerary, bookings and a travel diary |
| Editors, designers, managers and agencies | Operating expenses, provided any withholding or reporting obligations on the payment were met | Personal errands done by the same assistant | Invoices quoting an ABN and signed agreements |
| Advertising, promotion and a commercial website | Operating expenses on the ATO's list, including site maintenance and content updates | Usually none | Ad platform invoices and hosting bills |
| Tax agent, bookkeeping and business insurance | Tax-related costs and premiums such as professional indemnity and public risk cover are listed as operating expenses | Cover that protects private assets | Invoices and policy schedules |
The make-up row follows the ATO's creator guide, which uses a tutorial maker as its example. If you are still choosing cover, our creator business insurance checklist explains the policy types. Payments to editors and assistants raise their own questions, which our guide to hiring a contractor or an employee covers.
Working out the private-use share
The ATO's deductions guidance says occupancy expenses are generally apportioned by floor area and by the time the space serves the business, running expenses can use any of several methods, and other expenses are split on a fair and reasonable basis that reflects private use. It gives two examples worth copying: a laptop used half for business can only have half of a repair cost claimed, and a make-up artist who teaches and promotes make-up online, and estimates that about 50% of the products bought for the business end up in personal use, can claim only the other 50%.
A practical way to reach a defensible figure is to record actual use over a typical period, apply the result consistently and revisit it if your routine changes. Whatever method you use, the ATO expects records showing how the share was calculated, not just the final percentage.
Commonly disallowed claims
| Claim | Why it fails | Source |
|---|---|---|
| Everyday outfits worn on camera | Private or domestic; the business clothing list stops at uniforms, corporate wardrobes, occupation-specific and protective items | ATO operating expenses |
| The personal share of a phone, laptop or internet plan | Only the business portion of a mixed-use expense is deductible | ATO deductions |
| Sightseeing days, souvenirs and gifts on a shoot trip | Private expenses that must be excluded from business travel | ATO travel expenses |
| A partner or relative's costs on the trip | Expenses of taking a family member are listed as private | ATO travel expenses |
| Visas, passports and travel insurance | Named on the ATO's travel page as costs you cannot claim | ATO travel expenses |
| Dinners and drinks with collaborators | Entertainment is not deductible unless provided as an entertainment-related fringe benefit | ATO deductions |
| Traffic and parking fines | Fines are excluded outright | ATO deductions |
| Rent or interest on a home with no studio that qualifies | Occupancy costs need an area with the character of a place of business | ATO home-based business |
| Trips taken before the business started | Travel before you began running the business is excluded | ATO travel expenses |
| GST already claimed as a credit | The GST component cannot be deducted as well | ATO deductions |
| ATO interest charges on late tax | General and shortfall interest charges incurred on or after 1 July 2025 are no longer deductible | ATO deductions |
| Contractor payments where withholding was required but skipped | Payments that did not meet PAYG withholding or reporting obligations are not deductible | ATO deductions |
Equipment: write it off now or depreciate it?
Small businesses with aggregated turnover under $10 million can choose the simplified depreciation rules, and under them the ATO's instant asset write-off page, updated 28 August 2026, lists a $20,000 limit per asset for assets first used or installed ready for use on or after 1 July 2023, with no end date shown. The ATO's home-based business page, updated in June, describes the same $20,000 write-off for the 2023-24, 2024-25 and 2025-26 income years only. Before you rely on the write-off for gear bought in the current year, check the current position with your agent rather than assuming either page settles it.
Either way, only the business portion is claimed, and selling the item later can bring an amount back into income: the ATO's assessable income page says selling a depreciating asset may require a balancing adjustment or an adjustment to your small business pool.
Evidence the ATO expects for each claim
- Receipts and tax invoices for every purchase, kept for at least 5 years, the period the ATO's home-based business guidance sets for those claims.
- An hours record for the whole year if you use the fixed rate method, plus one bill or record for each additional running expense you claim, as the same page requires.
- A travel diary for overnight business travel; the ATO's travel page makes one compulsory for sole traders away 6 or more consecutive nights, written before the trip ends or as soon as possible afterwards.
- Your apportionment workings for every mixed-use item, showing the method and the period you measured.
- Proof of business use, such as links to the posts where props, outfits or products appear, filed next to the receipt.
- Photos and measurements of a home studio if you claim occupancy costs, showing that the space is set aside for the business.
Deductions lower taxable income rather than tax dollar for dollar; to see what a claim is worth at your rate, run your figures through our Australian creator tax estimate worksheet. Items you received free in exchange for posts are income first, covered in our guide to gifts, freebies and barter.
Limitations of this worksheet
This worksheet is general information from ATO pages checked on 1 October 2026 and assumes an Australian sole trader carrying on a business. It does not cover motor vehicle methods, superannuation contributions, companies or trusts, and the PSI rules can cut back several rows, notably home occupancy. Rates and limits that change each year, such as the write-off limit, need checking against the current ATO page when you lodge. US creators should use our US OnlyFans deductions guide instead, and the rest of the Australian picture is in the OnlyFans tax overview for Australia. A registered tax agent, whose registration you can confirm on the Tax Practitioners Board register, can test your apportionment before the ATO does.