• New Wave Accountants

Every Australian Business's Guide to Claiming Deductions

Tax deductions: For Australian business owners, this difference-maker is often seen as a concept that shouldn’t be overlooked because of how much it adds to one’s profit. For small businesses, being able to claim various expenses as tax-deductible is a crucial practice because of how it can help them get by in the toughest of times. It is for this reason that small business owners have become enamoured with the task of determining which of their expenses can be claimed on and which ones can’t.

As beneficial as tax deductions may be, however, it’s vital to consider that they can be quite challenging to understand, especially during tax season. Fortunately, getting acquainted with the essential rules and pieces of information can make a world of difference in the way you get to maximise your tax returns without much stress in the process.

Essential pieces of information worth understanding

If you’ve been lodging your tax returns or have been working with a dependable Queensland accounting firm but aren’t well-versed with claiming deductions, here’s everything you need to know:

The basic rules of claiming deductions

When it comes to making claims for deductions and ensuring that you get to save money during tax time, there are four must-follow rules for effectively doing so:

Rule #1: Make sure to claim your deduction in the same fiscal or accounting year that you made the purchase. For instance, if you’re claiming for 2021, then your claimable purchase must have been made between 1 July 2020 to 30 June 2021.

Rule #2: You can claim expenses that you’ve incurred in earning your taxable income, but not for private, capital, or domestic costs.

Rule #3: Never claim an expense that you have been or will be reimbursed for.

Rule #4: Always keep the written records, invoices, and receipts of deductible expenses that you’ll be making claims for.

The types of expenses you can claim on

Another crucial piece of information that you’ll need to take into mind when making your claims is the different types of expenses which are eligible for claiming. Here are three types of claim-eligible cost in further detail: Deductible expense #1: Home-office expenses With more and more businesses converting to home office set-ups in compliance with COVID-19 and social distancing guidelines, the Australian Taxation Office (ATO) has emphasised on making claims on home-office expenses. Cost components, such as tools, equipment, computers, printers, telephones, and work-related cellular plans, are tax-deductible and eligible for applications. Deductible expense #2: Association fees

Another type of expense that you can make claims for during tax time are the costs you’ve incurred for renewing your union and professional association fees. As long as these two entities are recognised by the government or related authoritative bodies in your industries, the costs of renewal that you incur with them are viable for a tax deduction! Deductible expense #3: Vehicle and travel expenses When it comes to dealing with travel expenses for work-related trips, there is another deductible cost opportunity that you can capitalise on during tax time. As long as it’s a trip which is made to carry out work, then you can make a claim for it. It’s essential to note, however, that the trips between home and work aren’t counted as the ATO views them as private travel.


Among all the different financial-related concepts that you’ll run into when taking hold of your business and improving the way it manages its costs, none are as advantageous as filing returns on tax-deductible expenses. By following this guide, you’ll be able to set your efforts straight and put them on the right path so that you can start experiencing significant savings and boosting your profits!

We're an accounting firm in the Gold Coast that specialises in various services, such as tax refund claiming, outsourced bookkeeping, and outsourced accounting services. Get in touch with us today to see how we can help keep your business in peak financial shape!

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