You can claim a deduction for most expenses you incur to run your business, as long as they directly relate to how you earn assessable income.
If you use your own car in performing your work-related duties
(including a car you lease or hire), you may be able to claim a
deduction for car expenses.
If the travel was partly private, you can claim only the work-related portion.
This information relates to car expenses only. A car is defined as a motor vehicle (excluding motor cycles and similar vehicles) designed to carry a load less than one tonne and fewer than nine passengers. Many four-wheel drive vehicles are included in this definition.
Its also important to remember that not all motor vehicle expenses have GST. For example motor vehicle registration and CTP green slips are free of GST.
The Australian Tax Office (ATO) have specific rules relating to how motor vehicle expenses are calculated, below is a guide you can download published by the ATO on claiming motor vehicle expenses for your business.
If you choose to use the cents per kilometer method then no GST is applicable.
For more information download Car Expenses guide.
If you or your employees travel for work, you can claim deductions on transport such as airfares, train, bus or taxi fares.
For overnight travel, the rule for claiming expenses is:
- one night or more – keep written evidence of all expenses
- six or more consecutive nights – keep a travel diary recording all the particulars of the business activities you undertake.
Check out the Australian Taxation Office (ATO) Business travel expenses information.
Repairs and maintenance
You can claim a deduction for repairs and maintenance on your business assets, including:
- conditioning gutters
- plumbing maintenance
- repairing electrical appliances
- repairing machinery.
For more information visit the ATO’s Repairs, maintenance and replacement expenses page.
Running your business from home
If you run a home-based business, or have a home office where you work from home, you may be able to claim:
- occupancy expenses – such as mortgage interest or rent, council rates, land taxes, house insurance premiums
- running expenses – such as gas and electricity, phone, decline in value of plant and equipment, decline in value and cost of repairs to furniture and furnishings, cleaning.
Use the ATO’s Home office expenses calculator page to help you work out the amount you can claim as a tax deduction for home office expenses.
General operating expenses
Operating expenses are the costs you incur in the everyday running of your business, such as:
You can generally claim a deduction for most operating expenses.
Check out the ATO’s Other operating expenses page for a full list you can claim information.
If you need assistance working out your GST obligations contact us for further support.