10 Tax Deductions Small Businesses in Australia Miss

Running a small business in Australia means juggling many responsibilities, but tax doesn't have to be one of your blind spots. Thousands of small business owners miss valuable deductions yearly due to a lack of awareness. These missed opportunities could be costing you thousands.

In this guide, we highlight the top 10 tax deductions Australian small businesses often overlook—and how an experienced accountant like Adenix can help you claim every dollar you're entitled to.

1. Small Business Tax Deductions: Home Office Expenses

If you operate your business from home, even part-time, you're eligible to claim expenses including:

• Internet and phone bills

• Electricity and utilities

• Rent or mortgage interest (proportional to office use)

• Office equipment and furniture depreciation

  
  

Pro Tip: The actual cost method generally yields higher deductions than the simplified rate.

2. Prepaid Expenses

Prepaying eligible expenses up to 12 months ahead allows you to bring forward deductions into the current financial year. These include:

• Insurance premiums

• Software and app subscriptions

• Business lease payments

  
  

Strategy Tip: Consider prepaying in June to maximise deductions before EOFY.

3. Small Business Tax Deductions: Vehicle Costs

Vehicle expenses are frequently underclaimed. Eligible deductions include:

• Fuel and maintenance

• Registration and insurance

• Interest on car loans

• Depreciation (if using the logbook method)

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Avoid This Mistake: Relying solely on the cents-per-kilometre method can limit your claims.

4. Startup and Setup Costs

Initial costs to start or establish your business are often claimable, such as:

• Legal and accounting fees

• ASIC registration

• Branding and website development

• Market research expenses

  
  

Note: These must be directly related to launching the business.

5. Bad Debts

Unpaid invoices that are genuinely unrecoverable can be written off and deducted. Tax Rule: The debt must have been previously reported as income in your records.

6. Training and Education

You can claim training that directly improves skills used in your current business operations:

• Software training (e.g., Xero, QuickBooks)

• Compliance workshops

• Leadership and productivity courses

  
  

Reminder: Courses unrelated to your current business are not deductible.

7. Depreciation of Equipment

Assets like computers, phones, printers, or tools used for business are eligible for depreciation. Tax Benefit: Many small businesses can claim the full amount under the Instant Asset Write-Off scheme, subject to eligibility.

8. Bank Fees and Interest

You can deduct bank charges and interest on business-related accounts, loans, and credit cards. Important: Keep business and personal finances separated to validate claims.

9. Business Insurance Premiums

Deductible types of insurance include:

• Public liability

• Professional indemnity

• Cybersecurity protection

• Business income protection (if structured correctly)

  
  

Exclusion: Life and personal health insurance are not deductible.

10. Accounting and Bookkeeping Fees

The cost of managing your business finances is deductible, including:

• Annual tax return preparation

• BAS lodgement services

• Financial strategy consultations

  
  

Final Thoughts: Maximise Your Deductions with Expert Help

These deductions are often missed not because they're obscure, but due to:

• Poor record-keeping

• Generalised or outdated advice

• Not having a proactive accountant

  
  

Partnering with Adenix ensures:

• Nothing is overlooked

• You stay fully compliant

• You only pay what you legally owe

👉 Explore Adenix's small business accounting services

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