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What small business expenses can I claim to reduce tax?


Business Tax

If you’re running a small business, it’s important to claim all the tax-deductible expenses that you’re entitled to, so that you pay less tax.


It’s also important to understand that tax minimisation is perfectly legal, but tax avoidance is not (and that tax avoidance results in heavy penalties).


In general, any legitimate expense incurred in generating income for your business is tax-deductible. However, you can’t claim private expenses and you must have records to prove your business expense claim (such as a receipt or invoice).


Here’s our guide to the most common business expenses you can claim to legally minimise the amount of tax you need to pay.


Operating Expenses

Operating expenses


Operating expenses are regular expenses that you incur when running your business. For example, staff wages, stationery, and the cost price of any products that you sell. These types of expenses can be deducted in full in the financial year that they are incurred.


Capital Asset Purchases

Capital expenses


Capital expenses on the other hand are less-regular costs, like buying expensive machinery or equipment assets that you need for your business (over the value of $30,000). A portion of these larger expenses can generally be deducted as a depreciation expense over a longer period, rather than the entire asset cost being deducted in the year that it is incurred.


We can help

How we can help


At Scorpion Bookkeeping, we can help you to set up a Xero online bookkeeping system to help you keep track of your business expenses so that you can claim them all and reduce your tax. We’re a Xero-certified advisor.


We can also help you with any bookkeeping support services that you may need, no matter what type of business you have. We currently have clients in a diverse range of industries in South Australia, Victoria and New South Wales.


Contact us today to find out how we can help your business!

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