What Tax Deductions Can I Claim As A Small Business?

What Can I Claim on Tax As a Small Business?

If you are a small business owner, getting business expenses in order as well as knowing what you can claim are essential steps to filing an accurate tax return – and it can save you thousands of dollars. Its important to be across the basics, and you can leave the rest to your accountant who understands the more complex side of small business tax. 

As a general rule, most expenses incurred in the process of running your business will be tax deductible. The ATO provides this list as a guide for small business owners as to what may be deductible. Your individual circumstances may vary, but that is where your accountant comes in. 

  • Advertising and sponsorship costs
  • Bad debts
  • Bank fees
  • Business motor vehicle usage, including luxury car leases
  • Business premises expenses, including land tax, rates and water usage, and rent or lease expenses.
  • Business travel
  • Work clothing and outdoor protective gear
  • Commercial website costs
  • Parking
  • Public relations
  • Phone bills
  • Education, technical or professional qualifications
  • Electricity
  • Home office expenses and stationery
  • Insurance premiums
  • Fringe benefits
  • Interest on money borrowed for income tax obligations, employer super contributions, late payment or lodgment of tax, to produce assessable income or purchase income-producing assets
  • Legal fees
  • Losses from a previous year
  • Registered tax agent and accountant fees
  • Repairing and maintaining income-producing property
  • Salaries, wages, bonuses or allowances
  • Subscriptions
  • Super contributions for employees, and some contractors paid primarily for their labour
  • Tax-related costs
  • Tender costs (even if unsuccessful)
  • Trading stock, including delivery charges
  • Transport and freight expenses
  • Travel for relocating employees
  • Union fees


Additionally, larger expenses can be depreciated over time (think large purchases such as a laser printer, business furniture, tools of the trade) as these are considered capital expenses. There are numerous industry specific deductions too, which only apply in certain circumstances.

By engaging an accountant who is well versed in business tax and tax planning this upcoming tax season – you could potentially save your small business thousands of dollars. Our accountants have extensive experience in small business tax, so if you are serious about your small business – contact us today.

related articles