The annual tax amount of your business can turn into a significant expense. However, there are some ways to reduce your tax payments. You can claim tax-deductions on different business expenses to save you money. Of course, it is challenging for business owners who have little knowledge about the policies and regulations of tax in Australia. The Australian Taxation Office (ATO) change the tax rulings as required which is why it’s vital to hire a certified bookkeeper and tax agent who can help you maintain your expenses, finance, and tax amount in an accurate way.
Read the article to learn more about tax-deductible expenses you can claim.
There are specific work-related travel and vehicle expenses you can claim. Some of them are:
Having a start-up means that you will need a place to run your business. Some people opt for proper offices. Others pick private residence to establish their small business. You can claim for home office-related expenses. If you have set your business in your home, you can claim occupancy expenses such as interest, mortgages, land tax, council rates, and insurances.
Make sure to keep the receipts of the expenses such as phone bills, electricity, internet, furniture, cleaning, and furnishes. Moreover, you can also claim for vehicle cost from your home to other places if the purpose of the travel is related to business.
There are some work-related expenses that any business owner can claim for tax deductions, depending on the individual circumstances and work. But make sure to avoid filing a tax return late, as it can lead you to pay taxes. The following are some tax-deductible expenses.
If you give donation or gifts to any charity or other organizations, you can claim tax deductions. That said, there are certain conditions that you should meet.
Typically, you can claim for the charity that is more than $2, but only if that organization has the DGR status.
You can avail of a tax deduction on the investments if you receive:
If any of the cases mentioned above, you can claim the tax deduction related to this income. You can also get a deduction in the amount you pay to get professional investment advice.
Now you know there are several ways to save money on tax. Apart from the mentioned ones, there is a long list of things you can do to save your money. For this reason, make sure to hire a professional and certified bookkeeper to make your entire tax filing process easy.
Contact Aone Account & Bookkeeping today to get your taxes sorted! Call us on (02) 4555 1847 or email us at clients@aoneaccount.com.
https://www.commbank.com.au/articles/tax/8-tax-deductible-expenses-you-may-be-able-claim.html
https://itp.com.au/top-tax-deductions-for-small-business-in-australia/
Information relevant to when article was first published in 2021 on aoneaccount.com.
