To be fully tax-deductible, your coach should only advise you on business matters. However, if your coach is a life coach, a coach who advises you on both business and personal matters, only the business portion of your fee will be tax-deductible. A business coach would be deductible. A PayPal receipt should be sufficient to determine that the amount was paid, but it would also keep a copy of your contract or agreement to prove that you are the previous type of coach.
When you file your tax return, you can declare most business expenses as tax deductions to reduce your taxable income. The ATO has created a “cash flow training kit”, which is a free resource and is designed as a value-added advisory tool for small business owners. It does not replace any existing accounting or financial tool, although it can be used to complement software accounting packages. With your personalized training conversations on cash flow management, the ATO kit can be particularly useful during times of financial stress.
They'll be able to provide you with the latest tax information for tips, such as deductions and exemptions. Tax professionals and business advisors can request the paper version through the ATO Publication Order Service. For example, if you purchase business advice and consulting for your RTO, you can request a deduction for the full price of the advice. Therefore, if you are going to hire a personal or professional trainer, the ATO (Australian Tax Office) may not consider it a work-related expense and you may not be able to claim them as deductions.