Want to cut your business costs? We’ve highlighted the business expenses that can (and cannot) be claimed against your ATO tax bill.
Incurring expenses is an unavoidable fact of running a business. But which expenses can you claim tax deductions against and which don’t meet the tax-free criteria?
Here’s our lowdown on which expenses you can claim against tax.
Which business expenses can you claim deductions against?
If your business expense is directly related to earning your assessable income then you should be able to claim a tax deduction against this particular cost.
For example, everyday business expenses that you may be eligible include:
The amount of a deduction (and when you can claim it) will vary, based on the type of expenses you’re claiming. You can find out more on the Australian Tax Office (ATO) website here.
There are three basic rules for checking the your expense claim is a valid business deduction – and that it won’t be challenged by the ATO.
Which business expenses can you NOT claim?
As we’ve explained, you can claim a deduction against most business expenses that are incurred as part of your day-to-day revenue-generation activities. But there are some business expenses you cannot claim against tax.
These non-tax-deductible expenses include:
Talk to us about reducing your business expenses
This isn’t an exhaustive list of tax-deductible expenses. There will be various ways to claim your operational expenses against the relevant reliefs and incentives offered by the ATO.
If you’re looking to cut back your costs and improve your tax efficiency, we can help. Talk to us about your regular operational expenses and tax costs and we’ll work with you to find the important reliefs, incentives and allowances that can be claimed.
Get in touch to start reducing your expenses.