Tax Deduction Tips

How to minimise your business tax burden

Every business is different, so an exhaustive list of what is tax deductible will vary. The following is a sample of the kinds of expenses that could be deductible – it might get you thinking about what you are claiming concerning your business.

• Salary and wages and bonuses paid to employees.
• FBT on fringe benefits paid is deductible.
• Staff recruitment costs (advertising, agency fees).
• The cost of drawing up employment agreements.
• Superannuation contributions.
• Workers compensation insurance.
• Rent or lease costs of business premises (the rent itself, lease document preparation costs, etc).
• Bank fees and charges on business bank accounts.
• Bad debts (must actually be written off as bad).
• Borrowing expenses, for example interest on funds borrowed that are used in the carrying on of the business, legal expenses, registration fees. Note that this year-by-year test allows for changes in the use of the borrowed funds.
• The cost of trading stock, including freight, taxes and insurance.
• Licence fees.
• Motor vehicle expenses.
• Repairs.
• Lease of equipment or plant.
• Depreciation of assets of the business. This can include the businesses’ buildings themselves.
• Advertising.
• Power costs.
• The cost of promotional giveaways.
• Gifts and donations to the value of $2 or more – this can include gifts of things like property (including trading stock) bought by the business during the 12 months before the gift was made.
• Transport and freight expenses.
• Fees of a registered tax agent.
• Cost of attending conferences related to the activities of the business.
• Payroll tax and land tax on business premises.