Here are some of the business expenses Steve could claim for his various jobs:
- Since he uses a mobile phone in all of his gigs, he can claim deductions on work-related mobile phones and phone bills.
- He writes from home, so he can claim some household expenses – for example a portion of his rent, insurance, power, home office expenses, and depreciation on items like his laptop and office furniture.
- As a ride-sharing driver and delivery driver, he can claim deductions on his vehicle – for example petrol, work-related parking expenses, vehicle repairs, maintenance, insurance and depreciation. Because it’s a private vehicle being used for business purposes, he can only claim the proportion that he uses for his business – for example, if he uses it for business half of the time, he can only claim half of the vehicle’s running costs.
- As a bike courier, he could claim some of his bike repairs and maintenance.
- If he uses an accountant or book-keeper, he can claim their fees.
Steve is careful to keep all his receipts, and makes sure his paperwork is in order. He keeps a vehicle logbook, and makes sure he logs the mileage for every trip he makes, and which company he’s making it for.
Steve will pay tax on his total income minus the business expenses he claims – his profit – so the more expenses he claims, the less tax he’ll have to pay.