Tax Deduction Tips

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.

 

  • Salary and wages and bonuses paid to employees.
  • FBT on fringe benefits paid is deductible.
  • Staff recruitment costs (advertising, agency fees).
  • The cost of drawing up employment agreements.
  • Superannuation contributions.
  • Workers compensation insurance.
  • Rent or lease costs of business premises (the rent itself, lease document preparation costs, etc).
  • Bank fees and charges on business bank accounts.
  • Bad debts (must actually be written off as bad).
  • 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.
  • The cost of trading stock, including freight, taxes and insurance.
  • Licence fees.
  • Motor vehicle expenses.
  • Repairs.
  • Lease of equipment or plant.
  • Depreciation of assets of the business. This can include the businesses’ buildings themselves.
  • Advertising.
  • Power costs.
  • The cost of promotional giveaways.
  • 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.
  • Transport and freight expenses.
  • Fees of a registered tax agent.
  • Cost of attending conferences related to the activities of the business.
  • Payroll tax and land tax on business premises.

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