Which business expenses can makeup artists legitimately claim as tax deductions?

Makeup artists can claim expenses directly related to their income-earning activity. These include items such as makeup products used on clients, skin-prep supplies, tools (brushes, sponges, applicators), work-specific equipment (lighting, chairs, camera), business-use portion of phone/laptop, marketing costs (website, social posts, branding), training courses related to the existing job, home-studio running costs (if a dedicated space is used), insurance, and registration or professional membership fees.

What expenses cannot be claimed by makeup artists, and what record-keeping is required?}

General personal grooming (own makeup, haircuts), everyday clothing without specific business branding or protective purpose, commuting to a regular workplace, client entertainment or meals (unless valid business purpose), fines, and purely private equipment are typically not deductible. For all claims you must have paid the expense yourself (not reimbursed), the expense must relate directly to your role, and you should keep receipts/invoices and evidence of business-use (e.g., logs or usage percentages).

What Makeup Artists Can Claim as Tax Deductions in Australia

‍

If you are a makeup artist in Australia — whether freelance, self-employed, or working in a salon — it is essential to understand what expenses you can legitimately claim to reduce your tax bill. The ATO allows deductions for costs that are directly related to earning your income, and for makeup artists, those costs can add up quickly.

At Trinity Accounting Practice, we support creative professionals and beauty industry businesses with tailored advice to maximise deductions and stay compliant.

‍

Tools of the Trade

The products and tools you use to perform your work are deductible, provided they are purchased for business use and not reimbursed by an employer or client.

‍

What You Can Claim

Deductible items include makeup products such as foundation, lipstick, and eyeshadow, skin preparation items including cleansers, moisturisers, and setting sprays, hair tools if they form part of your service offering, brushes, applicators, and sponges, and towels and sanitation items used with clients.

‍

The $300 Threshold

Individual items costing $300 or less can be claimed as an immediate deduction in the year of purchase. Items costing more than $300 must be depreciated over their effective life. If you are a small business with aggregated turnover under $10 million, you may also be eligible for the $20,000 instant asset write-off, which allows you to immediately deduct assets costing less than $20,000 each.

‍

Equipment and Technology

Technology and equipment that supports your work may be deductible. This includes the business-use portion of your mobile phone, a laptop or tablet used for administration and client bookings, lighting equipment such as ring lights and softboxes, portable makeup chairs and storage kits, and cameras used to build your portfolio.

If any of these items are used for both business and personal purposes, you can only claim the business-use percentage. Keep a usage diary or log to support your apportionment.

‍

Training and Professional Development

If you complete training to improve your existing skills, the costs may be deductible. This includes makeup and hairstyling workshops, short courses on current beauty techniques and trends, business coaching that directly relates to your services, and professional subscriptions to beauty industry publications.

The training must relate to your current role. Courses designed to help you move into an entirely new profession — such as retraining as a nurse or teacher — are not deductible.

‍

Travel and Vehicle Expenses

If you travel to clients, events, or venues as part of your work, those travel costs are deductible.

‍

What You Can Claim

Deductible travel expenses include vehicle costs using either the cents per kilometre method (88 cents per kilometre for the 2024-25 year, up to a maximum of 5,000 business kilometres for a maximum deduction of $4,400) or the logbook method (keep a logbook for 12 continuous weeks, valid for five years). You can also claim public transport fares, ride-share or taxi fares to job sites, parking and tolls for client appointments, and overnight accommodation when work requires you to travel away from home.

Daily travel from your home to a permanent salon or studio is considered private commuting and is not deductible. However, if you are a freelance artist travelling from home to different client locations each day, those trips may be deductible depending on your circumstances.

‍

Home Studio Expenses

If you work from home in a dedicated studio or use a home office for administrative tasks such as scheduling, invoicing, and social media management, you may be able to claim a portion of your home running costs.

Fixed Rate Method

You can claim 67 cents per hour for every hour you spend working from home. This rate covers electricity, internet, phone, stationery, and computer consumables. You must keep a record of the actual hours worked.

Actual Cost Method

Alternatively, you can claim the actual work-related portion of your expenses, including electricity, internet, and depreciation on mirrors, lighting, furniture, and other studio equipment. If you rent your home, you may also be able to claim a portion of your rent based on the floor area of your dedicated work space relative to the total home. This method requires more detailed record-keeping.

‍

Marketing and Business Development

The costs of promoting your services are tax-deductible. This includes website domain registration and hosting fees, paid advertising on social media platforms, graphic design for flyers, logos, or promotional materials, branding photoshoots and portfolio creation, and business cards or signage.

Keep receipts or digital records for all promotional expenses. If you pay a contractor to manage your social media or design your website, those payments are also deductible.

‍

Insurance and Registrations

Makeup artists can claim public liability or business insurance, equipment insurance, and memberships to industry bodies. These expenses protect your business and are directly connected to earning your income.

‍

Accounting and Professional Fees

Professional service fees are deductible, including tax agent and accountant fees, bookkeeping software subscriptions such as Xero, and legal advice for business contracts or disputes. These services must relate directly to your business operations.

‍

Uniforms and Protective Clothing

You can claim the cost of clothing that is embroidered or printed with your business logo, or protective items such as gloves, aprons, and face masks worn while working with clients. Everyday clothing — including plain black shirts or outfits chosen for style — is not deductible even if you only wear it while working.

‍

GST and BAS Obligations

If your annual turnover reaches $75,000, you are required to register for GST and lodge Business Activity Statements. Even if you are below the threshold, voluntary GST registration can be beneficial if you purchase significant supplies and equipment, as it allows you to claim GST credits on those purchases. Our bookkeeping team can manage your BAS lodgements and ensure you are claiming all your GST credits.

‍

Superannuation

If you are a sole trader, superannuation contributions to your own fund are not compulsory, but they are a highly effective tax strategy. Concessional (before-tax) contributions up to $30,000 per year for the 2024-25 income year are tax-deductible and reduce your taxable income. This can be particularly valuable in higher-earning years. If you employ staff, you must pay the superannuation guarantee of 11.5 per cent on their ordinary time earnings.

‍

What You Cannot Claim

Common items that makeup artists cannot deduct include general beauty or grooming products for personal use, everyday clothing or shoes even if worn while working, meals, coffee, or snacks during a normal work day, parking fines or speeding tickets, and the cost of makeup or training that is unrelated to your current business.

If you are unsure whether a particular expense qualifies, speak to our team before lodging your return.

‍

Record-Keeping

Keep all receipts and tax invoices for business purchases. Maintain a vehicle logbook or record of kilometres if claiming travel. Track your hours for home office claims. Save copies of insurance policies and membership confirmations. You are required to keep your tax records for a minimum of five years from the date you lodge your return.

‍

Get Your Makeup Artist Tax Return Right

Understanding what you can legitimately claim as a makeup artist helps you reduce your taxable income and reinvest in your business. With the right guidance, you can approach tax time with clarity and confidence.

At Trinity Accounting Practice, we work with makeup artists, beauty professionals, and beauty salon businesses across Sydney and Australia. From setting up your bookkeeping in Xero to preparing and lodging your BAS and tax returns, we provide practical support tailored to your industry.

‍

Trinity Accounting Practice

Accounting Firm in Beverly Hills, Sydney

Phone: 02 9543 6804

Address: 159 Stoney Creek Road, Beverly Hills NSW 2209

Website: www.trinitygroup.com.au

Weekend and after-hours appointments available

Book online now

‍

Our Virtual CFO division, VCFO Australia, provides strategic financial management, budgeting, forecasting, and compliance support for growing businesses and not-for-profits.

Learn more about what we offer

Discover the industries we specialise in

Our mortgage brokerage division, Nexus Wealth Partners Pty Ltd, assists clients with home loans, refinancing, and business finance.

Disclaimer: Information provided on this website is intended as a general overview only and does not replace professional advice tailored to your personal circumstances.

‍