Article
As a franchise business owner, you’re managing both your day-to-day operations and your responsibilities to the wider franchise brand. With all the moving parts, it’s important to know which business expenses you can claim to reduce your tax bill and which ones you can’t.
You’ll likely have a range of running costs, from franchise fees and staff wages to marketing and supplies. Some of these can be fully deducted from your business income, while others may only be partially deductible or not claimable at all.
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.
- Franchise and royalty fees.
- 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. Keep a logbook.
- 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.
- GST.
FAQs
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.
Let's catch up!
We’re keen to help, so contact us below & your branch will be in
touch, or find your local branch to learn more about them first.
