What deductions can a small business claim?

February 20, 2024
minutes to read
Michael Nuciforo
Table of Contents

There are so many taxes and compliance requirements to worry about when running a small business. It can feel like everything is put in place to make it harder, not easier, to operate a successful business. But did you know there is some relief available? You can claim some business expenses as deductions that can help reduce your overall tax burden. If saving money on tax seems like your jam, then read on to find out what types of expenses you can claim, and what deductions you are eligible for as a business owner.


Business travel expenses are some of the most common deductions available to business owners in Australia. These include costs associated with travelling for work, such as purchasing fuel, taking public transport, accommodation and meals, tolls and parking fees. Flights are also included. To claim travel expenses, you must demonstrate that they were to earn income or carry on your business activities.


If you work from home, either full-time or part-time, then you can deduct some or all the costs associated with running your home office. Common expenses you can claim include things like electricity, internet and mobile phone bills, cleaning services and furniture purchases. Computers, laptops and tablets can also be deducted, in addition to the software you use. You must also ensure that you have adequate records and keep your receipts for 5 years to support any claims you make. If you own or lease business premises, you can claim a deduction for expenses such as rent, mortgage interest, insurance, and repairs and maintenance.


If you've purchased equipment or machinery for your business, you can claim a deduction for the associated costs, such as the purchase price, delivery and installation charges, and repairs and maintenance. Clothing, uniform, and protective equipment expenses specifically required for your work are also included. Just ensure you keep accurate records of what you purchased, as you'll need to prove that it is necessary for your business.

Bank Fees

Suppose your business has a loan or credit with a bank. In that case, you may claim a deduction for the interest paid on that loan or credit facility. You can also claim deductions for any bank charges, such as transaction fees, if the item purchased was for your business.

Tracking the correct deductions, keeping receipts and recording everything accurately is a huge burden and time sink for many small business owners. If you are frustrated by the time involved in claiming the proper deductions, try Thriday.

Thriday is a powerful all-in-one financial management platform that combines banking, accounting and tax. Thriday lets you easily track all your expenses and automatically calculates the deductions you can claim. In addition, when you make a purchase or payment with Thriday, you can easily upload or forward the receipt you receive. This then gets reconciled to your bank transactions automatically, and any GST is also automatically claimed. Thriday is the easiest way to claim the maximum deductions you are eligible for.

Claiming deductions on taxes can be complicated and something that you absolutely want to get 100% right. If you make the wrong deduction claims, you may be audited and have a big, unexpected tax bill to pay. It is essential to keep track of any relevant receipts and GST so that claims can be substantiated come tax time. Using Thriday is the easiest and most accurate way to do that. Making sure you claim the right things as a deduction is the best way to maximise your business profits and reduce your tax burden at tax time.

DISCLAIMER: Team Thrive Pty Ltd ABN 15 637 676 496 (Thriday) is an authorised representative (No.1297601) of Regional Australia Bank ABN 21 087 650 360 AFSL 241167 (Regional Australia Bank). Regional Australia Bank is the issuer of the transaction account and debit card available through Thriday. Any information provided by Thriday is general in nature and does not take into account your personal situation. You should consider whether Thriday is appropriate for you. Team Thrive No 2 Pty Ltd ABN 26 677 263 606 (Thriday Accounting) is a Registered Tax Agent (No.26262416).

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