Updated: Nov 4, 2019

Whenever reviewing invoices and receipts period comes, almost small employers get confused because saved money typically is much lower than the amount you have spent. However, you indeed absolutely can earn a decent sum provided you utilize all the tax deductions suitable for your business. So let’s start to find out what you can do to claim the tax write-off for expenses related to running your business. Please note that all tips we provide in this series are consistent with the Australian Tax Office (ATO) criteria.

Basically, employers should know which payments are valid to claim and which is not. They obviously must have been the expense you spent on your business, not for an individual purpose. No one repays for the things that only benefit yourself. If the amount is for both business and non-business use, only the portion used for business purposes can be claimed. And a mandatory factor you are required to have is the evidence proving your expenses. About charges you cannot claim, they are an amount for some private use such as entertainment, fines, non-taxable expenses. You also cannot collect the GST component of purchase if it was a credit on your BAS.

When your deduction would be claimed? It relies on which type of expense you want to receive. If they are expenses you use for operating (for example wage, salary), you typically incur the expense of a legal pay for goods or services occurs. If they are capital expenses over a long period, you can claim it when the effective life of the asset is due. Whichever type of business you are running, you will collect your tax deduction in your tax return.

In the next parts of the topic about Claim tax deduction, we will provide you detail information about different categories of expenses you can collect. There is a total of 8 main categories as below:

  1. Deduction for motor vehicle expenses

  2. Deduction for home-based business expenses

  3. Deduction for travel expenses

  4. Deduction for salaries, wages and super

  5. Deduction for repairs, maintenance, and replacement expenses

  6. Deduction for operating expense

  7. Deduction for depreciating assets and other capital expenses

  8. Deduction for carbon sink forest expenses

If you need any assistance, feel free to contact us at or (08) 9345 0499.

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