Claiming deductions and concessions
If you spend money on business expenses, you may be able to claim a tax deduction, which means that you pay less tax. You may also be eligible for some small business tax concessions.
If you need help, phone the Business tax infoline on 13 28 66 or speak to a registered tax agent.
Deductions for business expenses
You can claim something as a tax deduction if you have:
- already paid (or committed to pay) for it
- bought it for your business
- kept a record of buying it.
What you can claim and when
Small business tax concessions
You may be able to claim one or more tax concessions for small business, such as:
- immediate deductions for prepaid expenses
- instant asset write-off
- deductions for professional expenses for start ups
- small business income tax offset
- capital gains tax (CGT) relief.
Small business entity concessions
CGT relief for corporations
A capital gain is when you sell an asset for more than the original price you paid for it. You normally have to pay tax on your capital gains.
However, CGT relief is available for Aboriginal and Torres Strait Islander corporations when:
- two or more corporations have united, or
- a corporation has transferred to the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI Act).
CGT roll-over relief means that you don't have to pay CGT on any capital gains which have occurred.
Tax relief for Indigenous corporations
You may be able to claim a tax deduction for some of your business expenses. You may also be eligible for tax concessions, such as the small business income tax offset and CGT concessions for Aboriginal and Torres Strait Islander corporations.