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Tax Time Deductions for Small Business

Tax Time Deductions for Small Business


Whilst you cannot claim private expenses, as a small business owner, you can claim a deduction for most costs you incur in running your business, for example staff wages, marketing and business finance costs.

Just remember to always ensure you keep records to support your 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, noting that fringe benefits tax may apply for some employment 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.

Keeping in mind 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.

Source: Interprac Ltd – Article from - Interprac Limited “2017 Spring Quarterly Newsletter”