Top Tax Deductions Every Australian Small Business Should Know About
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Running a small business in Australia is rewarding, but tax time can be daunting. The good news? Knowing what you can claim as deductions can make a real difference to your bottom line. At AAA Tax Agent & Accounting Services in Ropes Crossing, NSW, we’re here to help you keep more of your hard-earned money—while staying on the right side of the ATO.
Vehicle and Travel Expenses
Do you use your car for business—visiting clients, making deliveries, or heading to job sites? You might be able to claim:
Example: Sarah, a mobile hairdresser, drives to clients’ homes. By keeping a logbook and all her fuel receipts, she accurately claims her travel expenses each year.
ATO Tip: Use a logbook for 12 continuous weeks and keep all receipts. The logbook method often means bigger deductions and fewer headaches.
Home Office Expenses
Working from home is more common than ever. If you do, you can claim:
Example: James, a freelance graphic designer, claims 20% of his household electricity and internet, based on the space used for his home office.
ATO Tip: From 1 July 2022, you can use the fixed rate method (67 cents per hour) or calculate actual costs. Keep timesheets or a work diary to back up your claims.
Depreciation of Assets
Bought a new laptop, office chair, or tools for your business? You can claim a portion of their cost each year.
Example: Emily buys a $2,500 laptop for her consulting work. She claims depreciation over three years using the instant asset write-off scheme (if eligible).
ATO Tip: Check if you qualify for temporary full expensing or instant asset write-off before buying equipment. Always keep your receipts.
