Independent contractors account for almost 10 per cent of all employed Australians, according to data from the Australian Bureau of Statistics. As a freelancer, it's important to ensure you understand your obligations and what you can claim during tax time.
When you buy something for your business, you can use it to reduce your taxable income. When working for yourself, the line between business and personal expenses can sometimes blur.
Myles Pover, a principal in the business division at RSM Australia, said this was why it is essential to keep accurate records of the amounts you are claiming and to show the expense relates directly to running your business.
"If the expense is for both business and personal use, you can only claim the portion of the cost that is used for your business. When claiming tax deductions keep appropriate records to evidence the amounts you are claiming. The best way to do this is as you go during the year. Set up a cloud folder or similar and save copies of invoices as you go," Mr Pover said.