Running a small business involves balancing many responsibilities — and managing your taxes is one of the most important. Understanding what expenses you can claim as deductions can significantly reduce your taxable income, putting more money back into your business.
Costs for stationery, printer ink, postage, phone, and internet can all be deducted. If you have a dedicated office space, you can also claim a portion of your rent or lease expenses.
If you use your vehicle for business purposes — such as visiting clients, making deliveries, or attending meetings — you may claim the related expenses. The ATO allows two methods:
If you work from home, you can claim a portion of your home expenses including electricity, internet, phone, and depreciation of equipment. You can use the fixed rate method (currently 67 cents per hour) or calculate actual costs.
Wages paid to employees and super contributions are fully deductible business expenses. This includes contractors and subcontractors if treated as employees.
Fees paid to accountants, lawyers, consultants, or IT support are deductible. These services help run your business effectively and are considered essential expenses.
Expenses for website hosting, social media advertising, printed flyers, and sponsorships can be claimed. This also includes costs for promotional events.
Assets such as computers, office furniture, tools, and machinery can be depreciated over their effective life. For items under $300, you can claim an immediate deduction.
Only claim expenses that are directly related to your business activities. Personal expenses are not deductible, and mixing the two can attract ATO scrutiny. Always keep detailed receipts, invoices, and records to substantiate your claims.
If you’re unsure whether an expense is deductible, consult a registered tax agent. They can help you maximise your deductions legally and avoid costly mistakes.
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