5 Small business tax deductions you could be claiming

Every year, small business owners across Australia miss out on the opportunity to inject thousands of dollars back into their business. Why? Because they’re not taking full advantage of the tax deductions available to them. According to Business.gov.au, these are the five main small business tax deductions that you can claim next tax time. It’s important to take note now, so you can make informed purchasing decisions throughout the year.

1. Travel

If you or your employees travel for work, you can claim deductions on transport such as airfares, train, bus or taxi fares. For overnight travel, the rule for claiming expenses is:

  • one night or more – keep written evidence of all expenses
  • six or more consecutive nights – keep a travel diary recording all of the particulars of the business activities you undertake

To learn more, consult your accountant or visit the Australian Taxation Office’s (ATO) Business travel expenses page.

2. Motor vehicle expenses

Do you have a car you only use for business? Claiming expenses and how you calculate them will depend on:

  • your business structure (i.e. sole trader, company, partnership or trust)
  • the type of vehicle
  • how the vehicle is used

To learn more, consult your accountant or visit the ATO’s Motor vehicle expenses page.

3. Repairs and maintenance

You can claim a deduction for repairs and maintenance on your business assets, including:

  • painting
  • conditioning gutters
  • plumbing maintenance
  • repairing electrical appliances
  • repairing machinery

To learn more, consult your accountant or visit the ATO’s Repairs, maintenance and replacement expenses page.

4. Running your business from home

If you run your business from home, or sometimes work from your home office, you may be able to claim:

  • occupancy expenses – such as mortgage interest or rent, council rates, land taxes, house insurance premiums
  • running expenses – such as gas and electricity, phone, decline in value of plant equipment, decline in value and cost of repairs to furniture and furnishings, cleaning

You can use the ATO’s Home office expenses calculator page to help work out the amount you can claim as a tax deduction for home office expenses.

5. General operating expenses

Operating expenses are the costs you incur in the everyday running of your business.

You can generally claim a deduction for most operating expenses, such as:

  • stationery
  • salaries
  • internet
  • insurance

To learn more, visit the ATO’s Other operating expenses page.

Thousands of Australian small businesses require an additional cash flow injection each year. If you’re looking to take advantage of an opportunity or purchase new equipment, apply online for a small business loan today.

Source & for more info: www.business.gov.au

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