You can't 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.
See also: 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 landline – solely for business (this would usually be a second phone) you can claim a deduction for its expenses.
You can also claim a deduction for casual rental of work premises, such as 'room only' or hourly rental costs.
As a sole operator, you must complete an income tax return to report your income and claim your tax deductions for each income year.
You can't claim the full cost of such items in the year you purchased them because they are classified as capital expenses.
However, these can be depreciated or 'written down' over their effective life.
Note: You can claim everything you purchase from a sex shop for work.
If you are a sole operator in the adult industry, you pay the same income tax and are entitled to the same deductions as people who earn a wage or salary.
The following factors can help you decide whether the area of your home you use has the character of a 'place of business'.