Business Deductions Checklist

 

Below is a list of costs which your business may be entitled to claim as deductions when completing your tax return:

• Accountant's fees for preparing returns

• Accrued leave entitlements, transferred employee payments when purchasing an existing business

• Advertising expenses

• Airport lounge memberships

• Appeal costs relating to tax disputes

• Audit costs, including ATO audit

• Bad debts

• Bank charges

• Bills of exchange, discount factor

• "Blackhole" (business capital) expenses

• Borrowing expenses

• Broker's commission on borrowed moneys

• Buildings and structural improvements

• Business operating expenses

• Business subscriptions

• Business trip expenses

• Car/Motor Vehicle expenses

• Carbon pricing

• Clothing for employees (corporate wardrobes and uniforms, occupation specific clothing, protective clothing)

• Commercial websites

• Commission

• Computer software

• Consolidation valuation expenses

• Convention expenses

• Copyrights, patents and registered designs: registration fees and amortisation of development cost or purchase price

• COVID-19 test expenses

• Debt/equity swaps resulting in a loss

• Depreciation of business assets 

• Discounts or rebates on sales income

• Distribution by co-operative to members

• Domain name registration

• Dues: union, professional or business associations

• Education expenses

• Electricity connection costs

• Emissions units

• Employer's costs of share scheme

• Employment agreement expenses

• Entertainment expenses related to a business (limited)

• Environmental impact study expenses

• Environmental protection expenditure

• Equipment

• Exchange loss

• Fringe benefits tax payments

• Feasibility study expenses for new project

• Film (Australian) investment

• Financial arrangements losses

• GIC - General interest charges

• Gifts: advertising or public relations

• Gifts: made to current or former business clients

• Gifts: works of art and heritage items

• Gifts: $2 or more to prescribed recipients

• Gratuities to employees

• Home office expenses where home is used as business premises

• Insurance premiums

• Intellectual property

• Interest:

  • Interest on borrowings for employer superannuation contributions

  • Interest on borrowings to pay income tax

  • Interest on late lodgements

  • Interest on late payments of tax

  • Interest on money used for assessable income production or purchase of income-producing assets

  • Interest on underpaid tax where assessment amended

  • Interest referable to home office where home used as business premises

  • Interest withholding tax

• Investment losses

• Investment portfolio, expenses of servicing

• Land tax on business premises

• Late payment penalty interest

• Lease incentive payment

• Lease preparation expenses

• Lease termination payments

• Leave payments made by employer

• Legal expenses:

  • Proceedings affecting future income-earning

  • Relating to borrowing or mortgage discharge

  • Tax advice costs

• Lessor's or lessee's payment to secure early termination of business lease

• Loss on sale of property acquired before 20.9.85

• Losses (company) of current year

• Losses (trust) of current year

• Losses on isolated business transactions

• Losses: previous years

• Losses (foreign)

• Losses (trust) of previous years

• Losses through theft or misappropriation

• Losses, transferred from group company

• Low-cost business items

• Luxury car lease expenses

• Mains electricity connection

• Management expenses, investor

• Mortgage discharge expenses

• Municipal rates on business premises

• Natural disasters recovery expenses

• Newspapers and magazines

• Parking fees

• Partnership, share of net losses

• Patent, design, copyright registration costs

• Plant (installed), cost of bringing to full operation

• Professional journals: subscriptions

• Project infrastructure costs

• Relocation expenses incurred by an employer

• Rent collection commission

• Rent for business premises

• Rent referable to home office

• Repair costs under warranty

• Repairs to income-producing property

• Salaries paid in business

• Self-insurers’ provisions for workers compensation

• Service fees

• Shortfall interest charge

• Solicitor disbursements

• Spare parts

• Sponsorship fees

• Start-up costs

• Structural improvements (post 26.2.92)

• Superannuation contributions

• Takeover defence costs

• Tax advice costs

• Tax-agents fees

• Tax return lodgement costs

• Telephone expenses

• Tender costs

• Tools, depreciation and cost of transporting and insuring

• Trade union dues

• Trading stock

• Trading stock taken to new premises

• Travel (relocation) costs paid by employer

• Travel expenses, related to business

• Traveller accommodation buildings

• Trees, carbon sink forests

• Water facilities

• Water rates on business premises

• Website maintenance or modifications

• Work in progress payment​

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It's important to keep records (like receipts and logs) for any claims you make. Also, make sure that the expense is directly related to earning your income.

For a detailed and personalised list, it’s always recommended to consult with a tax professional, like Western Business Advisory, or the Australian Taxation Office (ATO).

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Here is a helpful link to the ATO tax deductions guidelines:

https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/income-and-deductions-for-business/deductions