As a business owner, you’re probably wondering which expenses can and cannot be claimed. Owning a business comes with a variety of running costs. You can claim all or some of these costs as a deduction against your business income. This reduces the tax you pay on the income you receive.
Check out our useful Business Expense Guide below to help you figure out what you can claim and can’t claim. If you need help with your business accounting, enquire below and we will help you keep track of business expenses and provide help when you need it.
What can be claimed as a business expense?
- Rent for business premises.
- Cost of sales i.e. purchasing stock.
- Wages and subcontractors.
- Advertising and marketing.
- Training and professional development.
- Interest on loans for your business.
- Telecommunications and utilities for your business.
- Memberships for professional associations.
- Accommodation when traveling for work.
- Travel costs when travelling from your workplace to a job.
- 50% of client gifts and events (food and beverages, restaurant meals, corporate boxes at sports events, etc.).
- Home office expenses – based on a percentage proportion of workspace to total house space.
- Work vehicles – a percentage deduction per year based on useful life.
- Tools, equipment and stationery for work – 100% for purchases less than $1,000 excl. GST. Purchases of more than this must be written off over a number of years at a percentage based on usual life.
- Protective clothing and uniforms.
- Other expenses incurred in the production of your income.
What cannot be claimed as a business expense?
- Clothes other than uniforms or protective clothing.
- Health costs, such as doctor’s visits, glasses and hearing aids.
- Life Insurance.
- Fines and penalties.
- Income tax.
Can I claim clothing as a business expense?
Only protective clothing or uniforms can be claimed. Corporate attire such as a suit cannot be claimed as a business expense.
Can I claim food as a business expense?
Meals and entertainment for business purposes are 50% tax deductible. The cost of your own meals is a private expense and is not claimable.
What car expenses can I claim?
You can claim in full all fuel, insurance, registration, depreciation, repairs, and maintenance costs relating to a vehicle you exclusively use for work. If the vehicle is also used personally, you will only be able to claim a proportion of these expenses equivalent to the amount you use the vehicle for work.
Do I need receipts for all business expenses?
Receipts only need to be kept for expenses costing over $50.