As tax time rolls around, it’s easy to feel confused, frustrated, and worried that your tax bill will be more than expected. No one likes surprises brought on by the taxman. So knowing which expenses to claim, how to manage compliance, and what changes are coming up can make a big difference to your bottom line.
Let’s break down the key tax tactics to keep your wellness business on track and help you save money where you can.
Maximising Your Deductions
Claiming the right deductions can make a huge difference to your tax outcome. The wellness industry has plenty of opportunities to claim business expenses and optimise tax liability, but it’s important to know which ones are relevant and to keep accurate records.
Tax Deductions for Cosmetic Clinics
| Specialised Equipment | Medical devices like laser machines and LED therapy units can be claimed as business expenses. |
| Protective Gear | PPE such as gloves, masks, and clinical coats are deductible. |
| Business Tech | Costs for iPads, laptops, and POS systems used for work are tax-deductible. |
| Client Comfort | Waiting room upgrades, like TVs or coffee machines, can be claimed as business expenses. |
| Professional Training | Training costs related to new procedures or compliance standards are deductible. |
Tax Deductions for Gyms and Fitness Professionals
| Branded Uniforms | Claim activewear with your business logo used specifically for work. |
| Outdoor Gear | Deduct items like hats, sunglasses, and sunscreen used during outdoor sessions. |
| Portable Equipment | Claim costs for gear like kettlebells and yoga mats used for client training. |
| Work-Related Travel | Deduct travel costs when moving between different client locations or work sites. |
| Professional Development | Claim fees for CPD workshops or technique courses. |
| Motor Vehicle Expenses | Use the 85c per km rate or the logbook method for travel between job sites on the same day. |
Take Advantage of the Instant Asset Write-Off
If your business has an annual turnover of less than $10 million, you might qualify for the instant asset write-off. For the 2024 and 2025 financial years, you can immediately deduct the cost of eligible assets that are under $20,000.
Eligible purchases might include:
- Gym equipment and fitness gear
- Office furniture and decor
- Computers, phones, and EFTPOS terminals
- Vehicles, as long as the cost doesn’t exceed $20,000
But remember, to claim the deduction in the current financial year, the asset must be installed and ready for use by June 30th. From 2026, the threshold will drop back to $1,000, so it makes sense to plan your purchases now.
Claiming Home Office Expenses
If you work from home, even just for admin tasks, you may be able to claim home office expenses. The fixed-rate method allows you to claim 67c per hour for the time spent working from home.
Eligible expenses include:
- Electricity and internet costs
- Phone bills
- Office supplies like stationery
Keep a record of your work-from-home hours to ensure you claim accurately. A simple diary or spreadsheet will do. You can also claim the decline in value of office furniture and equipment used for business purposes.
Defer Revenue to Defer Tax
Revenue should only be recognised when the service has been delivered or the asset has been installed and is ready for use. For businesses that receive income in advance, like fortnightly or monthly memberships in gyms, yoga studios, or wellness clinics, that revenue should be deferred until the service is delivered.
This isn’t just good accounting; it’s a smart tax planning move. Why pay tax now on revenue that technically belongs in the next financial year? Deferring revenue appropriately defers tax and keeps cash in the business longer. It’s a simple strategy that can improve your cash flow and reduce surprise tax bills.
Keep the ATO Off Your Back
Staying compliant with both ATO requirements and professional standards helps protect your business from fines and errors.
Here are a few key compliance points to watch:
GST Rules
Some treatments are GST-free, while others aren’t. Make sure you understand how this applies to your services.
Professional Regulations
If you’re a cosmetic or allied health provider, stay updated with AHPRA regulations and any industry changes.
Health Fund Recognition
Make sure your business meets the requirements if you offer claimable services.
This is where working with a tax planning accountant who knows the wellness sector (Like Growth iQ) can make a big difference. We will help you stay compliant while also identifying opportunities to save on tax.
What You Can’t Claim
It’s easy to assume that certain expenses are deductible just because they seem related to your wellness business. Here are some common mistakes to avoid:
- Personal Gym Clothes: Only branded uniforms count, not your own workout gear.
- Meals and Snacks: Unless you’re on overnight work travel and paying out of pocket, meals aren’t deductible.
- Daily Commutes: Travelling from home to your regular workplace doesn’t count, unless you’re transporting bulky gear that can’t be stored at your worksite.
- Personal Fitness Costs: Your own gym membership or fitness expenses are generally not deductible unless you meet strict criteria as an elite athlete.
Why You Should Work with a Tax Planning Accountant?
Managing tax for a wellness business can be complicated. Mistakes can easily happen when trying to understand which expenses you can and can’t claim.
A tax planning accountant who understands the wellness industry can help you:
- Spot deductions specific to your business
- Keep accurate records that satisfy ATO requirements
- Plan for upcoming tax changes
- File your return correctly and on time
Having a tax expert on your side means less stress and more peace of mind. Just like your clients rely on you for wellness advice, you can rely on a tax professional to keep your finances in good shape.
Get Your Tax Right with Growth iQ
Managing tax for your wellness business doesn’t have to be overwhelming. At Growth iQ, we’ve worked with wellness professionals across a range of sectors, from gyms and fitness studios to cosmetic clinics. We know that keeping track of deductions, staying compliant, and managing industry-specific expenses can be a lot to handle.
Our team knows how to identify the deductions that matter most to your business, keep accurate records that meet ATO requirements, and navigate changes that might affect your tax strategy. We’re here to simplify the process and help you make the most of every tax opportunity.
If you’re looking for practical advice and support from accountants who get how the wellness industry works, let’s chat. Our tax accountants in Adelaide are ready to help you make tax time easier and more rewarding. Get in touch with Growth iQ today to book your consultation.