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  • Claim the expenses you're entitled to

    13 July 2020

    You can claim a deduction for expenses related to earning your assessable income. But to claim what you’re entitled to, remember the three golden rules:

    1. The expense must have been for your business – not for private use.
    2. If an expense is for business and private use, you can only claim the portion used for your business (this is also known as apportioning an expense).
    3. You must have records to prove the expense, and if it's a mix of business and private use – show how you worked out the business portion.

    Expenses for which you can’t claim a deduction include entertainment, traffic fines and the GST component of a purchase (if you can claim it as a GST credit on your business activity statement).

    Your business structure (for example, sole trader, partnership, company or trust) can affect your entitlements and obligations for different expenses, so make sure you understand what applies to you.

    You can also only claim deductions for payments you make to your workers (employees or contractors) if you've complied with the PAYG withholding and reporting obligations for the payment.

    Remember, registered tax agents can help you with your tax.

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