Running a small business involves juggling many responsibilities, and tax time can feel especially overwhelming. At Wotton & Co, we help small business owners across Australia not just stay compliant, but also take advantage of all small business tax deductions they’re entitled to. Many businesses miss out on thousands of dollars in potential tax savings each year simply because they don’t know what they can claim.
Here are some of the most commonly overlooked tax deductions for small businesses:
If you run your business from home, you may be able to claim a portion of your rent or mortgage interest, electricity, internet, and even cleaning costs. The ATO provides different methods for calculating your home office expenses, and choosing the right one can make a big difference to your deduction.
Do you use your personal vehicle for business purposes? You may be eligible to claim fuel, maintenance, insurance, registration, and even depreciation. Be sure to keep a logbook or use a mileage tracking app – the ATO requires records to support your claims.
Fees paid to your accountant, lawyer, business coach or other professional advisers are tax-deductible if they directly relate to the operation of your business. This includes one-off consultations and ongoing retainer services.
From Facebook ads to printed flyers, website hosting to photography – all marketing and advertising costs used to promote your business are deductible. This includes the cost of engaging marketing consultants or web designers.
If you’re investing in yourself or your staff with training programs, short courses, or professional development that relates to your current business operations, it’s usually deductible. This is a great way to level up your business and get some money back at tax time.
Smaller tools and equipment can usually be written off immediately under the instant asset write-off scheme (if eligible), while larger items can be depreciated over time. Computers, printers, and even work phones can fall into this category.
If you've made all reasonable attempts to recover a debt and have written it off in your books, you may be able to claim it as a tax deduction. This is especially relevant for service-based businesses.
Business insurance premiums – including public liability, professional indemnity, and income protection (if included in assessable income) – are typically deductible.
Any interest charged on loans used for business purposes, or bank fees related to your business account, can be deducted. Make sure these expenses are separate from your personal banking to avoid confusion.
Every business is different, and the best way to maximise your deductions is to work with a professional who understands your industry and your goals.
At Wotton & Co, we specialise in working with small and family-run businesses. We take the time to understand your operations and tailor strategies to ensure you’re not missing out on valuable deductions or tax planning opportunities.
Need help at tax time or with setting up your accounts correctly from the start?
Let’s talk. Contact Wotton & Co today for friendly, expert accounting and business advice.
