Tax Deductible Expenses

  1. Tax Deductible Expenses

Tax Deductible Expenses


Tax Deductible Expenses

What is tax deductible expenses

Tax deductible business expenses, in general, are the day-to-day expenses that are incurred for running your business and aids in earning income for your business.

An awareness, in terms of knowing, managing and maximizing your ‘current’ and ‘capitalized’ expenses will help you to have a control on business expenses and fuel your business profit.

Such expenses cover general and administrative, home office, automobile, entertainment and travel, depreciation, employee benefits and health benefits.


What are deductible expenses for AU business

If you are running an AU Business, a clear scene of what all incurred business cost are to be taken into consideration for claiming under tax deductions.

There needs to be a record for these work-related expenses in the form of receipts, bank statements or diary entries.


A listing for deductible expenses that are inclusive in AU business, are:

  • Travel and vehicle
  • Home office
  • Self-education
  • Tools and equipment
  • Overtime meals
  • Clothing, laundry and dry-cleaning
  • Phones (mobile, home) and internet
  • Gifts, donations and personal contributions
  • Management of tax affairs
  • Investments, interests and dividends

List of expenses which cannot be claimed as business expenses

In addition to your being aware, as a business personal, on deductible taxes that you claim a return for; one also needs to keep a close count on the business expenses that don’t fall under the radar of claiming for return.

Such deductions encompasses expenditures such as:

  • Travel expenses that include property inspection and attending rental seminars.
  • The end costs incurred during acquisition and disposal of property.
  • Indirect expenses that are borne by the tenants of your rented home such as electricity and water bills and expenses for having rented your place as a holiday home for specific period in a year.

Home office expenses

Involves assigning a portion at home for setting up your business office. Certain criteria needs to be fulfilled, in order to be liable for claiming, as:

  • It is the prime hub of your business
  • Is the main center for conducting meetings and daily interactions with clients and customers
  • Is secluded from the house or place of residence that is positioned as an autonomous body on the property that you hold.

Shared telephone

Incurring telephony, landline and broadband expenses that are shared for your business purposes.Eligible to claim such deduction in case the contract is in your company’s name.


Shared vehicle used for business travel

Frequently claimed item for claiming tax return.Certain parameters set for calculation:

  • Per kilometer cost method
  • Car logbook (car expense tracking) method