It’s a good time to deliberate your Australian Taxation Office (ATO) tax deductions, especially those commonly forgotten and unexpected business expenses. Small business owners must consider some of the less obvious ATO tax deductions available.
As small business owners try to save money on their tax bill, tax deductions can be a lifesaver. While home office expenses and vehicle costs are common deductions, there are so many more tax deductions that you might be eligible for. Here are tax deductions that are often forgotten by small business owners.
Donations
Does your company make any donations throughout the year? You can claim this on your tax bill, whether it’s for a local charity fun run or a partnership with a non-profit.
Note: Donations of $2 or more to a charitable organisation is tax deductible just make sure you have receipts.
Tax-related expenses
While you can claim for your accountant fees, you can also claim for having a bookkeeper prepare your business records.
Others that may also be considered as tax-related expenses are preparing and lodging tax returns and business activity statements.
Premise expenses
If you run a business in a particular premise, you may claim related running costs like rent or leasing, electricity, phone, rates, and water expenses.
Website costs
The ATO allows you to claim various expenses that may incur in running your business (operating costs). This includes business website maintenance — site maintenance, internet costs, and content updates.
Advertising & sponsorship costs
Along with public relations expenses, your advertising and sponsorship costs may also be tax deductible.
Subscription costs
If you have a subscription to a newspaper, magazine, business, or professional journal related to running your business, you can claim this cost as a business expense.
Repairs & maintenance
You can claim a deduction for any repairs and maintenance costs if you use tools or machinery to produce a business income. Make sure these expenses are not capital expenses.
This may include repairing machinery, electrical appliances, maintaining plumbing, and mending leaks.
Sunglasses, sunscreen, & hats
You can claim the cost of sunglasses, sunscreen, & hats as a tax deduction if your business activities require outdoor work.
Insurance premiums
The ATO allows you to claim for insurance premiums: public risk, accident or disability, motor vehicle, fire, burglary, loss of profits insurance, workers’ compensation, or professional indemnity.
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