The Hidden Cost of Overlooking Wellness Coach Tax Deductions
For self-employed wellness coaches in Australia, overlooking eligible tax deductions directly reduces take-home income. Expenses for client programs, professional training, digital tools, and business insurance are often missed due to misunderstandings or misclassification. Over a year, these gaps can cost thousands in unnecessary ATO payments. Knowing which costs legitimately relate to coaching income ensures you claim what’s rightfully yours without risk.
Wellness Coach Duties and Professional Responsibilities
Wellness coaches support clients in improving lifestyle habits, mindset, health behaviours, and overall well-being through structured coaching sessions, goal-setting, accountability, and education. Duties include conducting client assessments, preparing personalised wellness plans, running one-on-one or group coaching sessions (in person or online), documenting progress notes, researching evidence-based practices, maintaining professional boundaries, undertaking ongoing training, and promoting services. The role may involve digital tools, reference materials, marketing activities and professional insurance when operating under an ABN.
Typical Tax Deductions Include:
- Professional memberships – Coaching, wellbeing or health practitioner associations
- Training, CPD & courses – Coaching accreditation, motivational interviewing, behaviour change, mental health first aid
- Laptop/tablet (> $300 depreciated) – Client notes, programs, online coaching; apportion private use
- Mobile phone & data – Work-use portion only
- Clinical tools – Assessment forms, coaching workbooks, client tracking apps (work portion)
- Reference materials – Coaching texts, wellbeing research, psychology resources
- Home-office running expenses (approved method) – For admin, program creation, and online coaching
- Work-related travel – Travel to client sessions, workshops, and co-working spaces (nonreimbursed only)
- Stationery – Client forms, journals, planners used in sessions
- Professional insurance – Professional indemnity & public liability for contractors
- Marketing & website costs – Social media ads, website hosting, and booking software
Non-Deductible Expenses:
- Everyday clothing worn to sessions – Private
- Gym memberships or fitness classes – Private unless exclusively work-required and employercertified
- Wellness products used personally (teas, supplements, boho décor – Private
- Decor (candles, plants, crystals) – Private unless exclusively in a commercial office
- Travel: home ↔ regular coaching venue – Private
- Home studio occupancy costs – Not deductible unless the exclusive-use test is met
- Personal therapy or coaching – Private
- 100% claims for devices or phones – Must apportion
Click here to see Tax Calculator for Wellness coach.
Frequently Asked Questions
1. What tax deductions can wellness coaches claim?
You can claim expenses directly related to your coaching services, such as client coaching work expenses and business tools.
2. Are holistic wellness coach tax deductions different?
No. The same ATO rules apply claims that must relate to earning your coaching income.
3. Can wellness coaches claim training costs?
Yes, if the training improves skills used in your current coaching work.
4. Do deductions affect a wellness coaching tax return?
Claiming eligible deductions can reduce taxable income and support a better coaching services tax refund.
5. Why keep records for a personal wellbeing tax return?
Good records help support claims and keep your tax return ATO-compliant.
