What Tax Deductions Can I Claim as a Small Business in Australia?

If you're a business owner, understanding tax deductions for small businesses in Australia is key to avoiding overpayment and staying ATO-compliant.

One question comes up every year: What can I actually claim on tax? The good news? There are plenty of deductions available — if you know where to look.

At Adenix Accounting, we break it down simply — no jargon, no fluff. Just real tax-saving advice designed for Aussie business owners.

Why Tax Deductions Matter

Every deduction reduces your taxable income, which means you pay less tax to the ATO. But getting it wrong? That could mean an audit, penalties, or missed savings.

Let’s walk through the most common (and powerful) deductions you should know.

Tax Deductions for Small Business in Australia: What Can You Legally Claim?

1. Operating Expenses

Every day, running costs are 100% deductible. This includes:

• Office rent or coworking fees

• Internet and phone bills

• Software like Xero or MYOB

• Subscriptions (e.g. Canva, Google Workspace)

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💡 Need help tracking these? We’ve got tools that make it easy — contact us here.

2. Home Office Expenses

Working from home? You may be able to claim:

• A percentage of rent or mortgage interest

• Electricity, internet and phone bills

• Office furniture depreciation

  
  

  Use the ATO’s home office calculator here to stay compliant.

3. Vehicle & Travel Costs

If you use your vehicle for business, expenses like fuel, insurance, rego, and servicing can be claimed. Use:

• The logbook method

• Or the cents-per-kilometre method (for sole traders)

  
  

💡 Business trips? Flights, taxis, accommodation, and meals are deductible, as long as they're work-related.

4. Marketing & Advertising

Promoting your business? Claim 100% of your:

• Facebook & Google Ads

• Website costs

• SEO, photography, and design

• Business cards, signage, printing

5. Professional Services

You can claim:

• Accounting and tax agent fees

• Legal advice for business matters

• Business coaching and training

  
  

Yes — your fees with us are tax-deductible. Win-win.

6. Superannuation Contributions

If you employ staff, your super payments are deductible. If you're a sole trader, personal super contributions may also be deductible (if you lodge a Notice of Intent with your fund).

The ATO has more info here.

7. Asset Depreciation

Purchased a laptop, office chair, or tools? You might:

• Immediately write off the cost (if eligible)

• Or depreciate the asset over time

  
  

See the ATO’s full guide to capital expenses & depreciation.

What You Can’t Claim

Not everything’s deductible. You can’t claim:

• Personal expenses (like groceries or your home Netflix account)

• Fines or penalties

• Entertainment not directly related to your business

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Avoid Guesswork — Get Expert Help

It’s easy to miss deductions or claim something incorrectly. That’s where we come in.

At Adenix Accounting, we specialise in helping Australian small businesses:

• Maximise deductions

• Stay ATO-compliant

• Keep more of what you earn

  
  

✅ Ready to save money this tax season? Book a consult now and let’s do it properly — the first time.

Frequently Asked Questions (FAQs)

Can I claim tax deductions without receipts? You need records. The ATO requires documentation for 5 years — digital or paper.

Is my accountant’s fee tax-deductible? Yes — if it relates to preparing your return or business advice, it’s fully claimable.

How do I switch accountants? Easy. Just tell your current accountant, and we’ll handle the rest.