What you can and cannot claim
I am not sure if this is common knowledge, but there are many expenses that those in the Adult Industry can claim against tax in Australia, and these include:
What you can claim
You can claim a deduction for the total cost of advertising your business in the adult industry.
You may be eligible to claim the 30% child Care rebate. You cannot claim a deduction for child care expenses.
You can only claim a deduction for the cost of clothing you use solely for earning income, including costumes and lingerie. You cannot claim a deduction for items such as dresses, skirts, blouses, trousers, shirts and shoes for everyday use.
You can claim a deduction for consumable items you use solely for earning income, including condoms, lubricants, gels, oils and tissues.
Cosmetics and hair care
You can claim a deduction for stage make-up and products you use for removing stage make-up. Some brands of makeup sold in department stores are considered stage makeup, and some stage make-up stores sell make-up that is not grease-paint based. In both of these cases, you can claim the costs of this make-up. You cannot claim a deduction for the cost of general hairdressing and make-up or beauty treatments.
You can claim a tax deduction for the cost of classes you take to maintain your existing dance skills or to learn new dance skills.
You cannot claim a tax deduction for the cost of maintaining your general fitness and body shape.
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. Unless you use your home as a place of business, you generally cannot claim the cost of travel between your home and place of work.
If you operate your business from home and you maintain only one telephone – mobile or landline – you can claim part of your telephone rental and the cost of your business phone calls.
If you use your phone – mobile or land line – solely for business (this would usually be a second phone), you can claim a deduction for its expenses.
If you use a phone for both business and private calls, you can claim a deduction for business calls and part of the rental costs.
You cannot claim:
installation or connection costs
expenses incurred for the early cancellation of a mobile phone contract (these are not an allowable deduction as they are not incurred in gaining assessable income and are of a capital nature)
cost of an unlisted telephone number.
Tools and equipment
You can claim the cost of replacing or repairing equipment (that is, fetish equipment), adult novelties (such as vibrators), and other items you use in your work. You cannot claim the full cost of such items in the year you purchased them as they are classified as capital expenses. However, these can be depreciated or ‘written down’ over their effective life. Under the simplified depreciation rules, you can immediately depreciate the total cost of capital items you purchase for less than $1,000 if both of the following apply: