Tax Deductions for the Adult Industry Checklist
Advertising
You can claim a deduction for the total cost of advertising your business in the adult industry.
Child Care
You may be eligible to claim the 30% child Care rebate. You cannot claim a deduction for child care expenses while you are working.
Clothing
Only claim a deduction for the cost, repair and maintenance of clothing you use solely for earning income, including costumes and lingerie. Not for dresses, skirts, blouses, trousers, shirts and shoes for everyday use.
Consumables
Including condoms, lubricants, gels, oils and tissues but not for these items purchased for your private use.
Cosmetics and Hair Care
Only for treatments and products specific to your income-producing activity. Not for general hairdressing and make-up or beauty treatments.
Dance Lessons
The cost of classes you take to maintain your existing dance skills or to learn new dance skills as used in your work.
Fitness
You cannot claim a tax deduction for the cost of maintaining your general fitness and body shape.
Motor Vehicles
You can claim your motor vehicle expenses if you use your motor vehicle in the course of operating your business – for example, to travel from client to client.
Phone
Record keeping is simplified if you have one phone only for work and another only for non-work use.
If you use a phone for both business and private calls, keep a record for a representative four-week period to work out a pattern of business calls and use this formula to calculate the percentage of phone rental expenses you can claim.
Number of business calls you made and received / Number of total calls made and received X 100
You cannot claim:
- installation or connection costs
- expenses incurred for the early cancellation of a mobile phone contract
- cost of an unlisted telephone number.
Tools and Equipment
The cost of replacing or repairing equipment (that is, fetish equipment), adult novelties (such as vibrators), and other items you use in your work. Items costing more than $1,000 excl GST are depreciated over several years.
Tax Agent Fees
Home-based Business
If you work from home, you can claim a deduction for the additional expenses you incur to run your office or a room for business purposes. For instance electricity and cleaning costs, and part of the decline in value (depreciation) of equipment and fittings.
If you own your home and use an area as a place of business, you can claim a deduction for part of your rates, mortgage interest and other expenses. However, capital gains tax will apply when you sell your home.
If you rent your home, you can also claim a portion of your rent as a business expense. You can also claim a portion of your electricity and water.
Separate Premises
All the expenses you incur in renting and operating those premises. You can also claim a deduction for casual rental of work premises, such as ‘room only’ or hourly rental costs.
Travel Expenses
Expenses where the sole or primary purpose of the travel was to meet a client.
Food and Drink
Meal expenses incurred while working away from home, eg. in another town.
Food, drink and refreshments provided as part of your service but not the portion consumed by you.
