When claiming deductions for your small business this tax time, make sure you follow these three golden rules:

Know What You Can Claim
  • The expense must have been for your business – not for private use.
  • If the expense is for a mix of business and private use, you can only claim the portion that is used for your business.
  • You must have records to prove the expense and show how you worked out the business portion of an expense.

You can claim a deduction for most of your business expenses, including:

  • staff wages and super
  • operating expenses
  • home-based business expenses
  • business travel expenses
  • motor vehicle expenses associated with running and maintaining a vehicle for your business
  • donations made to organisations that are deductible gift recipients.

You can’t claim expenses that are non-deductible, such as penalties, fines, or private expenses.

Source ATO