Are Life Coach Expenses Tax-Deductible?

Are Life Coach Expenses Tax-Deductible blog image

Are life coach expenses tax deductible? Can hiring a coach be treated as a tax-deductible expense? Here in Australia and most countries, the general rule is if it’s not a work-related expense, it cannot be claimed as a deduction.

So if you’re going to hire a life coach or a career coach, it may not be seen by the ATO (Australian Taxation Office) as a work-related expense and you may not be able to claim them as deductions.

3 Golden Rules For Tax Deductions

According to the ATO, there are three golden rules that they will accept as a valid business or work-related deduction:

  1. You must have spent the money on your business, not for private use.
  2. It must be directly linked to earning your income.
  3. You must have a record of the transaction.

Therefore, getting a life coach may not be considered as a tax-deductible expense because the ATO may think that life coaching doesn’t directly concern a business nor contribute to business growth.

Here are other examples of expenses that you can’t claim:

  • Expenses associated with earning an income that’s not assessable, like money you earn from your hobbies
  • Domestic expenses like childcare
  • Private expenses like therapy

Couple calculating their taxes imageHowever, depending on your occupation, you may be able to claim specific deductions connected to your industry.

Also, people who hire a business coach might get a tax deduction since they can help you with your vision, mission, marketing strategies, building relationships with clients and employees, etc. which are all for growing a business.

But at the end of the day, it’s really best to speak with an accountant or a tax specialist regarding these matters.

They’ll be able to provide you with the latest tax information when it comes to coaching like deductions and exemptions.

Are Life Coach Expenses Tax-Deductible - In Conclusion

While some forms of coaching such as business coaching could be tax-deductible, life coaching on the other hand may be seen as a personal expense so you might not be able to get a deduction.

However, as advised, go see an accountant so they can tell you the deductions and exemptions that are available for your specific circumstance.

But here’s a thought… why not save your money from all the coaching, accountant fees and taxes by just becoming your own coach instead?

Because it is possible to be your own life coach and teach yourself to only do the things that you know you should do so you can live a life that you love!

Attractive middle aged woman portrait imageIf you’re curious about learning how to coach yourself to success in business and life, check out our 1-day FREE event How To Become A Highly Successful Coach by clicking here.

You don’t need any qualifications to be your own life coach. I’ll show you how to reach your life goals faster and live a life that you’ve been dreaming of. Hope to see you soon, and we hope that this post helps answer your question are life coach expenses tax-deductible.

Starting A Successful Life Coaching Business In 90 Days

How To Start A Successful Life Coaching Business In 90 Days eBook Cover 350x49

Whether you're a new or existing coach, we also recommend you look at this...

Special Free Report - How To Start A Successful Life Coaching Business In 90 Days

Having coached thousands of coaches since 2009, we've got it down to a science. Download this free step-by-step...

These are the exact systems that we've used to transform our own company into a 2-time BRW award-winning company in Australia. Download it here for free today.

Read more about: Coaching

Ben is the Difference-Maker Mentor and Co-founder of Authentic Education. He is exquisite at inspiring people to share their message, make a difference in the world and live abundantly on purpose.

Ben has been featured in media such as the Today Show, Inc.com, Entrepreneur.com, Huffington Post and News.com.au.