Show download pdf controls
  • Deductions for small business

    You can claim a deduction for most costs you incur in running your business, for example staff wages, marketing, and business finance costs.

    Remember – you can't claim private expenses and make sure you keep records to support your claims.

    What business travel expenses can I claim?

    If you or your employees travel for business, you can claim:

    • airfares, train, tram, bus or taxi fares
    • accommodation costs and meal expenses for overnight business travel – fringe benefits tax may apply for some employee travel expenses.

    Can I deduct the cost of some assets straight away?

    If you use the simplified depreciation rules, you claim a deduction immediately for each asset first used or installed ready for use, less than the following thresholds:

    • $150,000, from 12 March 2020 to 30 June 2020
    • $30,000, from 7.30pm (AEDT) on 2 April 2019 until 11 March 2020
    • $25,000, from 29 January 2019 to 7.30pm (AEDT) on 2 April 2019
    • $20,000, before 29 January 2019.

    What can I claim if I have a home-based business?

    If you run your business at your home, or your business is based from home, you can claim the business portion of some expenses, including mortgage interest and electricity.

    If you sell your home, you may have to pay capital gains tax (CGT) on the business portion and declare it in your tax return.

    Find out about:

      Last modified: 07 May 2020QC 53345