Small Business Tax Deductions

Are you in the dark about what small business tax deductions you might be eligible for?

Stellar Accounts is here to help change that; we make business accounting easy whether you’re a sole trader or running a company with multiple staff, and no matter where you are based in Australia.

So, what tax deductions can a small business claim?

It depends on the industry and what expenses the ATO deems to be relevant for your line of work, your business structure, and where you may be working from.

In this blog we share some of things you perhaps didn’t know you could claim, along with some common missteps we see small business owners make.

But the biggest thing to remember is that you’re not expected to be an expert in this field. You need to find an accountant who knows the ins and outs of small business finances and can help maximise your deductions.

Deductions You Didn’t Know You Could Claim

When it comes to tax deductions and small business, you can make a claim for most costs you may incur in the running of your business. This includes things like staff wages and business finance costs.

If running your business from home, you are entitled to claim the business portion of some expenses such as mortgage interest and bills (electricity, phone or internet).

Pro tip: This is one area you definitely want to get the advice of a small business accounting specialist. For home-based businesses what and how much you can claim depend on the size and nature of business operations.

The number one thing to remember is that you can only claim the work-related portion of your expenses (whether you are based at home or not) and always keep records as proof to support any claims you may make.

For more information about claimable tax deductions contact Stellar Accounts on 0428 887 104.

Common mis-claimed deductions

One of the most commonly mis-claimed deduction, is around possible Capital Gains Tax implications (CGT) for home-based businesses. A lot of small businesses think if you do not claim the expenses of running your business from home you would have a CGT issue.

They are wrong – the ATO states that if you use your home to generate income, then a portion of your home may be liable for CGT. There can be different implications depending on business structure as well. This is one of the most misunderstood deductions for small businesses run from home.

Other common mis-claimed deductions include only needing credit card statements as proof of claims – the ATO expects to see tax invoices, not statements.

The ability to claim things like gym memberships, hair, make up, clothes and even holidays is far more limited than you may think, too. While a small portion of business owners may be eligible (because there is a direct link to earning their income), the majority of taxpayers are unable to claim.

Why Choose Stellar Accounts?

If you’re looking for an accountant that is a small business specialist, we’d love to hear from you. You’ll receive expert advice tailored to your personal circumstances from Debbie Hoffman, Stellar Accounts CPA (Certified Practising Accountant).

Here’s four other reasons to consider us:

  • We are small business specialists – we work with small business owners everyday to help them better understand and comply with tax legislation.
  • We’re a small business too! Owned and operated by CPA DStellar Accounts is a small business owned and operated by Deb Hoffman.
  • Our independent accounting practice is now 100% online making it easy and convenient for you to connect with us at a time that suits you.
  • We operate as a flexible online basis, there is no need to come into an office.

You can also join and follow our Facebook group – Australian Small Business – Tax, BAS, GST Advice.

Small Business Tax Deductions

We take the worry and stress out of all your accounting, tax and bookkeeping needs, giving you all the information and advice on how to understand and meet your tax obligations.

For expert advice and information on small business tax deductions, get in touch with us at Stellar Accounts. Call us on 0428 887 104 today or enquire online here.


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Stellar Accounts is Brisbane’s leading small and new business accounting firm. We have a reputation for simplifying your accounting, tax and bookkeeping needs so you don’t need to stress or worry.

With more than 20 years’ experience across a wide array of industries – our clients (typically small and medium sized businesses) – gain a distinct advantage over their competitors because we keep them in the loop of the latest information and regulatory requirements. Call us on 0428 887 104.

Check out our blog for the latest news – including tips and tricks for better managing your business or personal financials.