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Business owners need to think about business tax deductions, so here’s a checklist of all the business tax deductions you should check out. Understand how you can maximise the money you spend on the business and the strategies you can use to reduce your tax.

Business tax

Business tax deductions are the expenses you incur as you run your business and are related to your assessable income. These business expenses can be deducted from your assessable income to reduce your tax. To know if an expense is a business deduction, it has to be incurred for business use and you have the records to prove it.

To minimise your tax, you can maximise your business deductions – but not to spend money.

You can focus on your business operating expenses and not let any fly under the radar if they can qualify as tax deductions. All business expenses can be claimed as a tax deduction, including training, purchases, rent, utility, advertising and insurance.

Remember that you can write off new equipment immediately. Current temporary full expensing allows businesses with less than $5 million of turnover to claim a 100% tax write-off on any assets bought that financial year. You don’t need to wait to claim depreciation.

Business structure

Structure your business correctly so you can claim your concessional super contributions as a tax deduction up to $25,000. Talk to a superannuation adviser to make sure you’re doing this correctly.

You can also rollover unused portion of your concessional super contributions from the previous five years to the next.

You can claim home-based business expenses if you’re running your business from home, including electricity, depreciation of office equipment, internet, rent, property insurance and council rates.

If you travel for business purposes, you can claim some of your expenses as a tax deduction. You can also buy a vehicle through your business and claim the GST credit and temporary full expensing simultaneously. 100% of the cost will be tax deductible up to $60,733 for 2021-22. The operating expenses can be claimed based on a logbook percentage. Fringe benefits must also be considered. Speak to us and make sure you optimise your business tax deduction.

You can also write off bad debts, depending on your business structure. It will allow you to claim an expenses for the amount on the invoice. You don’t need to pay tax on income that you never received but you need to prove that it is bad debt and you’ve chased it up.

You need to make sure that your personal tax levels do not exceed company tax rate and vice versa, so you need a plan that will allow you to pay wages in accordance with employment contracts and get the best possible tax result.

Some expenses are not tax deductible, including speeding fines, domestic expenses, entertainment expenses, expenses from non-assessable and GST if you claim a GST credit on a purchase in our BAS.

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As you look for different ways to grow and improve your business, seeking professional advice could prove to be an important and helpful decision.

You can click here to speak to a businessaccounting and bookkeeping firm. We also offer hospitality business consultation and mortgage services. We will give you a call to know more about your needs. We will explain to you how we can improve your business.

We would love to help you formulate investment strategies and streamline your processes to take your business to the next level.  Our goal is to help you grow your business, find ways to invest more and increase your productivity.

Sky Accountants Ballarat

Phone: 1300 328 855

Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia

Postal Address: PO Box 2234, Bakery Hill, Victoria 3354

Sky Accountants Gisborne & Macedon Ranges

Phone: 03 97444522

Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia

Postal Address: PO Box 270 Gisborne Victoria 3437