Did you know your business may be eligible for a handful of tax deductions you might not have considered?
In Australia, there are several commonly overlooked business tax deductions that can help reduce taxable income and lower overall tax liability.
With the end of another financial year ending, it means tax time is almost upon us once again. Tax time is our fun time however we understand this may not be the case for some business owners. But you are not alone – here are some tax deduction items to consider – plus if you have questions, contact us.
Home office expenses as a tax deduction
If you operate a business from your home, you may be eligible to claim deductions for a portion of your home office expenses. This can include utilities, internet, and depreciation of office equipment.
Motor vehicle expenses
Business-related vehicle expenses, such as fuel, maintenance, insurance, and depreciation, can be claimed as deductions. You can choose between the logbook method or the cents per kilometre method to calculate these expenses. For more information about what details and records are required to be eligible for a motor vehicle tax deduction visit the ATO website here.
Tax deduction tips for business travel expenses
Expenses incurred during business-related travel, including accommodation, meals, and transportation, can be claimed as a tax deduction. Remember to keep records and receipts to support your claims.
Professional development and education
Costs associated with professional development, training courses, conferences, and seminars relevant to your business can be claimed as deductions.
Marketing and advertising expenses
Expenditure related to advertising, marketing campaigns, website development, and promotional materials are generally deductible. Accurate records are of course important for any tax deduction claim.
Bad debts
There is nothing quite so annoying as unpaid invoices. The bright side is if you have unpaid invoices or debts that are deemed as bad debts, you may be able to claim a tax deduction for these debts. However, certain conditions must be met, and proper documentation is required. Contact the CVW Accounting team for more information and a chat.
Superannuation contributions
Contributions made to employees’ superannuation funds by the required deadlines are tax-deductible. Ensure you comply with the superannuation guarantee obligations. If this is not on your radar or you have questions, touch base with us today.
Business insurance premiums
Premiums paid for business-related insurance, can be claimed as a tax deduction. This includes things such as public liability, professional indemnity, and business interruption insurance. Insurance can often be a hefty annual bill so, make a note to include this in your list of tax deductions.
Software and subscriptions
Expenses related to business software, subscriptions, and licenses, such as accounting software, project management tools, or industry-specific software, are generally deductible. For example your business subscription for Xero or QuickBooks or if you have a Canva subscription for us in your marketing business.
Donations
Donations made to eligible charities and non-profit organisations may be tax-deductible for businesses. If you have a cause that is close to your heart, donations are one way business owners can make a difference. If you have questions about how to achieve this without negatively impacting your business contact the CVW Accounting team.
It’s important to note that tax deductions can vary depending on the nature of your business, the industry your business operates in, and other specific circumstances. Plus every business is different, with specific goals.
Consulting with a qualified accountant or tax professional is highly recommended to ensure accurate and compliant deduction claims. A qualified taxation professional can provide personalised advice based on your unique business situation and help you maximise your eligible deductions while staying within the bounds of Australian tax laws and regulations.
Of course, the CVW Accounting team are here to assist you and your business. For a no-obligation chat touch base with us today on 9219 1300.
