Expenses You Can Claim for Businesses
“Saving Tax is the extra income that you do not have to work for.”
Introduction:
Each year a lot of the business lose their claimable business expenses. So we suggest you a simple and better process.
You get a separate bank account for the business and only use the bank account / card for business transactions. If you use your personal credit card to purchase for the business reimburse yourself as soon as possible. Do not use the business account / card for your personal expenses, coffee, restaurants, groceries etc.
These are the Business Expenses You can Claim
1. Purchases of Material and Supplies
Purchases that you resell, raw material etc
2. Accountancy , Tax & Bookkeeping
3. Advertising & Marketing
4. Bank Fees
Bank Account keeping fees, Cheque Fees, Credit Card Charges
5. Commission Expenses
Commission you paid for referrals
6. Contractor / Subcontractor Expenses
Any Contractor of subcontractors that you employ are contractors but you should make sure that they should be proper business and not got ABN who are actually employees. ATO treat them as deemed employees and you have employer responsibilities especially superannuation.
7. Cleaning & Rubbish Removal
8. Director Fee
If you are the director of your company then you can either get paid as director fee or wages.
9. Filing Fee
ASIC Fees you pay annually
10. Freight & Courier
11. General Expenses / Office Expenses
12. Insurance - General
13. Insurance - Work Cover
14. Interest Expenses
Interest Expenses on Loans and Overdrafts used for business
15. License / Registration / Membership Fees
16. Motor Vehicle Expenses
Fuel (Petrol, Diesel), Registration Fees, CTP Greenslips, Insurance, Repair & Maintenance of MV, Tolls, Parking etc. Interest expenses if you hire purchase or borrowed to purchase the motor vehicle and Depreciation (There is Tax Limit)
*You must apportion private usage and company owned cars trigger Fringe Benefits
17. Merchant Fee
18. Council Rates / Water Rates
19. Rent
Rent of Office / Business Premises
20. Superannuation
21. Subscriptions
Subscriptions to software and magazines
22. Staff Training
23. Staff Amenities
24. Telephone & Internet
25. Travelling Expenses
Travelling expenses national and International
26. Franchise Fees
27. Wages & Salaries
28. Depreciation Expenses
Depreciation on Business Assets (That are more than $300)
29. Uniform, Workwear and Protective Clothing
30. Repair and Maintenance
You can claim repair and maintenance of of machinery, tools and premises (Not Capital exp)
There are rules for claiming These
1. Entertainment
Usually Business Lunches, Coffees are generally no allowed unless FBT
Please read our Blog Post 'Demystifying the Entertainment Expenses'
