Four things for small businesses to claim as tax deductions
Business account and loan expenses
If you’re a small business owner who uses personal banking products for business purposes, you could be missing a trick. Switching to a business loan or business overdraft means you might be able to claim the interest on either or both as tax deductions. And if you happen to have a business bank account that charges fees (hint: Great Southern Bank Business+ Accounts don’t!), you may be able to claim those too.
Business travel expenses
According to the ATO, you are entitled to claim tax deductions for travel expenses when you or your employees travel for business purposes. Expenses that could be claimed include:
- Airfares
- Train, tram, bus, taxi, or ride-sourcing fares
- Car hire fees and the costs you incur (such as fuel, tolls and car parking) when using a hire car for business purposes
- Accommodation
- Meals (if you are away overnight).
You may also be able to claim vehicle-related expenses too. This will depend on the structure of your business, the type of vehicle in question, and the extent to which it’s used for business purposes. For more details, please see the relevant page of the ATO website.
Operating expenses
This is a broad category which covers most costs related to the running of your business. Here’s a by-no-means exhaustive list of operating expenses you might be able to claim.
- Employer super contributions
- Marketing and PR
- Stock purchases (including delivery expenses)
- Legal fees
- Insurance
- Stationery
- Subscription fees
- Waste removal and recycling
- Parking fees (not parking fines though!)
- Uniforms and protective clothing
- Small-value items costing $100 or less (incl. GST).
For more details, please refer to the appropriate page of the ATO website.
Home businesses
If you run some or all of your business from home, you may be able to claim tax deductions for business expenses. Broadly speaking, they fall into three categories:
- Occupancy expenses
These might include mortgage interest or rent, council rates, land taxes, and house insurance
premiums. - Running expenses
This is stuff like electricity, phone bills, decline in value of equipment, repairs, and cleaning. - Motor vehicle expenses
For example, the cost of business-related motor vehicle trips to and from your home.
Exactly what you’re entitled to claim depends on your personal circumstances and the way in which you run a business from home. For more detailed information, it’s best to check the relevant page of the ATO website.
What can’t be claimed?
As you might imagine, private or personal expenses can’t be claimed as business tax deductions. But there are a couple of things you might think are eligible that aren’t.
These include:
- Entertainment expenses (even if business related).
- Government fines and penalties.
- The GST portion of purchases if the business is registered for GST.
For more about what you can’t claim, please refer to the appropriate page of the ATO website.
We’re here to help
It’s easy to keep track of your business expenses with Great Southern Bank Business+. You can open multiple Business+ Saver accounts within minutes to help you stay ahead of your tax, GST, and other obligations.
Also, don’t forget to check out our Business Hub, where you’ll find heaps of free resources and plenty of helpful information to keep your business humming.
