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Claiming deductions and concessions

You may be eligible to claim a tax deduction for business expenses or small business tax concessions.

Last updated 25 November 2020

If you spend money on business expenses, you may be able to claim a tax deduction, which means 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.

See also:

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.

See also:

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.

A corporation is a company or group of people who act and are legally recognised as being a single entity.

Eligibility

Indigenous corporations and their members, other business entities, shareholders and holders of ownership interests that meet the criteria are eligible for roll-over relief.

If you think you are eligible for roll-over relief, contact us or a registered tax practitioner to discuss the rules and conditions.

Part of an Aboriginal and Torres Strait Islander corporation

CGT roll-over relief is now available for an Indigenous corporation that has either:

  • transferred its incorporation
  • wound up and then reincorporated.

Relief will be available where the transfer or reincorporation occurs under either of the following legislations:

  • Corporations (Aboriginal and Torres Strait Islander) Act 2006 (CATSI)
  • Corporations Act 2001.

The CATSI Act?

The CATSI Act enables Indigenous groups to form corporations and includes special measures to meet the specific needs of Indigenous Australians. It replaces the Aboriginal Councils and Associations Act 1976 (the ACA Act).

Registration of corporations under the CATSI Act is mostly voluntary. Corporations who must register include 'prescribed bodies corporate' set up under the Native Title Act 1993. You can find out if you must register under the CATSI Act by phoning the Office of the Registrar of Indigenous Corporations (ORIC) on 1800 622 431.

More information

For more information about CGT:

QC39608