What about Expenses?
by Accounts StudioJul 2, 2012
While the ATO does not keep a complete list of what you can claim as a business expense, they do have two basic guidelines. Firstly, you must have actually paid or at least are committed to spending money on the expense and secondly, the expense must be shown to be related to your business. You cannot claim any private or domestic expenses including food or regular clothing or similarly, expenses incurred prior to commencing the operation of your business.
Common claims include, although are not limited to, advertising, bank fees and charges, business travel, electricity, wages, vehicle expenses, repairs, phone expenses, rent or lease costs (including home premises), home office expenses, freight/transport fees and super contributions. If you are unsure about what you can claim as a business expense, contact either the ATO or your tax advisor.
Claiming deductions for depreciation is also a legitimate part of business reporting. A depreciating asset (an asset that has a limited effective life) includes your computer, any business tools, furnishings, carpet, curtains and motor vehicles.
For further information visit www.ato.gov.au or download their guide entitled Tax Basics For Small Businesses (http://www.ato.gov.au/content/downloads/BUS25193n1908_07_10.pdf), which is particularly helpful when determining your expenses.
TAGS: tax , business expense , expenses , ATO , deductions
Recent Posts
Want to find out more?
T: 02 9699 2880
E: admin@accountsstudio.com.au
A: First Floor
8 – 10 Hart St
Surry Hills NSW 2010
What our clients are saying...
Sue Heins
Councillor at Warringah Council
Sue Heins
Councillor at Warringah Council


Anne Maybus
Writer and Content Creator, Clever Streak
Anne Maybus
Writer and Content Creator, Clever Streak


Adam Dobson
Strategic Resourcing Manager
Adam Dobson
Strategic Resourcing Manager


Robert Gerrish
Founder and Director, Flying Solo
Robert Gerrish
Founder and Director, Flying Solo


Kristy Smith
Director, Virtual Elves Outsourcing Solutions
Kristy Smith
Director, Virtual Elves Outsourcing Solutions


Gai Hook
Virtual Sales Strategy
Gai Hook
Virtual Sales Strategy


Jennifer Dalitz
Gender Diversity expert, Career Coach, Award winning blogger on women, work & leadership @ www.TheSheEOBlog.com
Jennifer Dalitz
Gender Diversity expert, Career Coach, Award winning blogger on women, work & leadership @ www.TheSheEOBlog.com


Dianna Holwerda
Client Service Manager, John Sergeant Associates Pty Ltd
Dianna Holwerda
Client Service Manager, John Sergeant Associates Pty Ltd


Eleni Mitakos
Galmatic Pty Ltd
Eleni Mitakos
Galmatic Pty Ltd


Chris Du Plessis
Managing Director, Origin Meat Pty Ltd
Chris Du Plessis
Managing Director, Origin Meat Pty Ltd
