How to minimise your business tax burden
Every business is different, so an exhaustive list of what is tax deductible will vary. The following is a sample of the kinds of expenses that could be deductible – it might get you thinking about what you are claiming concerning your business.
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Salary and wages and bonuses paid to employees.
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FBT on fringe benefits paid is deductible.
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Staff recruitment costs (advertising, agency fees).
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The cost of drawing up employment agreements.
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Superannuation contributions.
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Workers compensation insurance.
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Rent or lease costs of business premises (the rent itself, lease document preparation costs, etc).
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Bank fees and charges on business bank accounts.
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Bad debts (must actually be written off as bad).
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Borrowing expenses, for example interest on funds borrowed that are used in the carrying on of the business, legal expenses, registration fees. Note that this year-by-year test allows for changes in the use of the borrowed funds.
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The cost of trading stock, including freight, taxes and insurance.
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Licence fees.
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Motor vehicle expenses.
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Repairs.
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Lease of equipment or plant.
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Depreciation of assets of the business. This can include the businesses’ buildings themselves.
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Advertising.
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Power costs.
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The cost of promotional giveaways.
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Gifts and donations to the value of $2 or more – this can include gifts of things like property (including trading stock) bought by the business during the 12 months before the gift was made.
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Transport and freight expenses.
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Fees of a registered tax agent.
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Cost of attending conferences related to the activities of the business.
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Payroll tax and land tax on business premises.
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