Business Tax Deductions - What Can You Claim?


As a small business owner, you want to save money and knowing what you can and cannot claim at tax time can save or cost small business owners thousands of dollars. That is why it is important to be well informed as to what deductions are available and appropriate for your business.


So, what can small businesses claim in their annual tax return?


You can claim a deduction for most costs you incur in running your business, for example staff wages, marketing, and business finance costs.


Remember – you can't claim private expenses and you need to make sure you keep records to support your business claims.


What business travel expenses can I claim?


If you or your employees travel for business, you can claim:

  • airfares, train, bus or taxi fares

  • accommodation costs and meal expenses for overnight business travel – fringe benefits tax may apply for some employee travel expenses.


Can I deduct the cost of some assets straight away?


If you use the simplified depreciation rules, you claim a deduction:

  • immediately – for the business portion of depreciating assets costing less than $20,000 each

  • over time – for most other assets, combining costs into a small business pool and claiming a set percentage each year

  • immediately – if the balance of your pool is less than $20,000 at the end of the income year.


What can I claim if I have a home-based business?


If you run your business at your home, or your business is based from home, you can claim the business portion of some expenses, including mortgage interest and electricity.


If you sell your home, you may have to pay capital gains tax (CGT) on the business portion and declare it in your tax return.


For further information on business deductions please click here or contact our office via email or phone (07) 3446 5906.



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