Hi there
Just wondering if sole traders can claim a tax deduction on EAP services for him/herself. I know it's available for companies but what about sole traders?
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Hi @DonM,
Employee Assistance Programs are a fringe benefit.
A fringe benefit is a benefit provided to an employee because that person is an employee of that business. Employers then generally claim an income tax deduction for the cost of providing said fringe benefits.
Because a sole trader is not an employee, they cannot claim a deduction for a service like an Employee Assistance Program.
You can read about fringe benefits tax for small business on our website.
As an alternative, you can speak to your general practitioner to create a mental health plan. This enables you to claim up to 20 sessions with a mental health care professional per calendar year, so costs (if any) are mitigated by an amount Medicare will cover on your behalf.
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Hi @DonM,
Employee Assistance Programs are a fringe benefit.
A fringe benefit is a benefit provided to an employee because that person is an employee of that business. Employers then generally claim an income tax deduction for the cost of providing said fringe benefits.
Because a sole trader is not an employee, they cannot claim a deduction for a service like an Employee Assistance Program.
You can read about fringe benefits tax for small business on our website.
As an alternative, you can speak to your general practitioner to create a mental health plan. This enables you to claim up to 20 sessions with a mental health care professional per calendar year, so costs (if any) are mitigated by an amount Medicare will cover on your behalf.
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