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