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8 things you can claim as a business tax deduction

No one enjoys doing their taxes – especially business owners who are already short on time. So for this end of financial year (EOFY), we’re making life a little bit easier by sharing the top 8 tax deductions you can claim as a business.

1. Damaged and obsolete stock

EOFY is the ideal time to do a stocktake. Not only will it keep you up to date on what stock you have at hand, but you’ll be able to write down – or write off – any damaged or obsolete products.

2. New assets

Eligible businesses can still take advantage of the instant asset write-off scheme this year, so make sure any new or second-hand business assets are purchased and being used before the financial year cut-off date.

3. Prepaid expenses

Subscriptions, training events, rents and leases, upcoming business travel expenses – all these costs and more can be prepaid during the current financial year to reduce your tax bill.

4. Donations

Did you know that any donation over $2 is tax deductible in Australia? If you tend to make business donations throughout the year, keep the receipts and make sure you are getting a tax deduction for your philanthropy.

5. Associated costs for rental properties

There’s a long list of things you can claim for commercial rental properties – and they often go unclaimed. From gardening to pest control, bookkeeping fees to security costs, it pays to look into your claimable options.

6. Work-from-home expenses

Many startups and small businesses operate out of residential premises. The ATO allows you to make a claim on a number of expenses you accrue while working from home, such as electricity, office furniture depreciation and internet costs.

“With more and more people now running their businesses from home, there are different tax breaks that can help boost your cash flow,” says David Crook, Managing Director at Nero Financial. “We work with entrepreneurs and business owners across all industries, so we can advise you about how to make the most of tax time.”

7. Car and phone costs

On the road for work or regularly on business-related calls? You can claim a deduction on both work-related car and mobile phone expenses. Just make sure you keep a valid logbook of your travels for at least a three-month period.

8. Upskilling

If there’s a direct connection between a self-education course and your business, you can get a tax break for studying. Deductions may be made on things like textbooks, stationery, student services fees and even accommodation and meals if you are studying away from home.

EOFY shouldn’t just be about how much you owe the tax man. There are great savings to be made if you know where to look – and we can provide the capital to get you started. Contact Nero Financial today or call 1300 025 949 to find out how we can help with the right lending solution.