A List of Tax Deductions to be Considered

A

  • Accounting and Auditing Expenses such as:
    • Auditing of your books and accounts
    • Costs of bookkeeping
    • Costs of defending against any ATO or state agency audits or challenges
    • Costs of investigation of any tax returns
    • Costs of tax strategy preparation
    • Tax Agent Fees
  • Advertising in:
    • Newspaper
    • Magazine
    • Radio
    • Other Media
    • Contributions to various organisations for advertising purposes
    • Costs of displays, posters, etc. to attract customers
    • Prizes and other expenses in holding contests or exhibitions
    • Publicity generally speaking, all costs including venues, music etc.
  • Alcohol as gifts for staff, customers, tenants and business
  • Amortisation

B

  • Bad Debts if income taken into account
  • Bank Fees & Government Charges
  • Batteries for calculators etc.
  • Birthday Gifts under $300 to employees infrequently, tenants any value, etc (non entertainment)
  • Books – occupation specific, investment related, motivational, used in waiting room, as gifts to staff etc.
  • Borrowing expenses (Deductible over 5 years)
  • Briefcase

C

  • Calculator
  • Capital Losses
  • Carried Forward Losses
  • Christmas presents to staff (less than $300 infrequently), customers, or prospects (non entertainment)
  • Cleaning and cleaning products (business or investment properties)
  • Clothing – protective or corporate, registered uniforms
  • Commissions on sales of securities by dealers in securities
  • Computer depreciation
  • Costs of goods sold
  • Council rates & water rates
  • Courier
  • Credit card interest and fees for business
  • Corporate credit card membership
  • Crockery used in tea room
  • Cutlery used in tea room
  • CDs for recording
  • CD player (diary business % if have 2, one exclusive for business)
  • Computers as a gift to clients, tenants etc.

D

  • Depreciation
  • Director’s fees and allowances
  • Discounts allowed to customers
  • Donations to registered charities
  • Drivers Licence
  • Dry cleaning of approved uniforms or protective clothing
  • Dues paid to:
    • Better business bureau
    • Chamber of commerce
    • Trade associations
    • Professional societies
    • Technical societies
    • Protective services association
  • DVDs or DVD playeras gifts to clients, tenants etc.

E

  • Easter Eggs for reception, employees, tenants, agents etc.
  • Electronic Diary
  • Employee agreements
  • Entertainment expenses (limited circumstances)
  • Environmental impact statements
  • Exhibits and displays to publicise your products and services

F

  • Factoring
  • Fax machines
  • Fees for passport & visas necessary when travelling on business
  • Fees to technicians (professionals for services rendered)
  • Film
  • Financial Planning advice (except for initial fee)
  • First aid kit and courses
  • Forfeited stock
  • Forklift licenses
  • Flowers used in reception or gifts for staff, business associates, tenants and agents
  • Food (staff amenities such as tea/coffee/biscuits, at meetings & seminars)
  • Freight charges
  • Fringe Benefits Tax expenses

G

  • Gardening for rental property or office
  • Gifts to staff under $300 infrequently, for tenants, agents business associates (non entertainment)
  • Gift vouchers to staff under $300 infrequently, for tenants, agents, customers, business associates (non entertainment)
  • Glassware for staff room/client visits
  • Glasses and protective eye-wear
  • Greeting cards – marketing tool of business
  • GST
  • Guard Dog – costs of owning and maintaining
  • Guarantor’s loss
  • Games as gifts
  • Groceries as gifts
  • Gardening equipment as gifts

H

  • Hire of plant & equipment, vehicles etc.
  • Hire purchase interest and charges
  • Home office expenses

I

  • Indemnity payments
  • Insecticides
  • Insurance premiums on:
    • Income protection insurance
    • Life – Keyman
    • Landlords
    • Building /Content/Public liability
    • Asset protection
  • Interest on late payment of tax return
  • Interest on loans of all kinds for business purposes such as:
    • On loans
    • On mortgages
    • On bonds
    • On tax deficiencies
    • On instalment payments of auto, furniture etc.
    • On margin account with broker
    • Bank discount on bank bills and promissory notes
      • On net loss of property to set up separate account
  • Inventory loss due to damage
  • Investment advisor fees
  • Internet fees searching for rental properties, investments, sending emails to clients

J K L

  • Land tax
  • Lease preparation
  • Leases on property and plant
  • Legal costs
  • Legal expenses involving:
    • Tax strategy
    • Drafting of agreements, resolutions, minutes, etc.
    • Defence of claims against your business
    • Collection actions taken against others
    • Any other business related legal activity
    • In settlement of cases
    • Payment of damages
  • Licence fees
  • Losses, deductible if connected with your business or profession such as:
    • Abandoned property
    • Accounts receivable
    • Auto damage caused by fire, theft, heat, storm, etc.
    • Bad debts
    • Bonds
    • Buildings damaged
    • Burglary
    • Business ventures
    • Capital assets
    • Casualties fire, theft, heat, storm, etc.
    • Damages to property or assets
    • Deposit forfeiture, on purchase of property
    • Drought
    • Embezzlements
    • Equipment abandoned
    • Forced sale or exchange
    • Foreclosures
    • Forfeitures
    • Freezing
    • Loans not collectible
    • Theft
    • Transactions entered into for profit
  • Lunches In house

M

  • Magazines, industry specific or used in waiting rooms or office
  • Membership dues (Accor, Qantas, Frequent flyer, Airport lounge etc.)
  • Mobile phone and answering machines
  • Morning and afternoon teas
  • Motor Vehicle expenses for business purposes, such as:
    • Damage to vehicle not covered by insurance
    • Petrol, diesel, gas etc.
    • Oil
    • Repairs and maintenance
    • Washing and polishing
    • Batteries
    • Garage rent
    • Interest portion of payments
    • Insurance premiums such as fire, theft, collision, liability etc.
    • Lease payments
    • Registration
    • Depreciation (where you own the car or HP the car)
    • Bridge Tolls
    • Parking
    • Road Tolls
    • Auto association membership
    • Tyres
  • Music used in office environment or as gift

N

  • Newspapers

O

  • Office equipment
  • Office furnishings eg. couches, chairs, dried flowers & vases, pot plants, painting, microwave etc.
  • Office rent – including home office
  • Overtime meal allowances (re awards)

P

  • Paging equipment
  • Parking
  • Payroll tax
  • Pest control expenses
  • Petty cash
  • Photography (used to promote business)
  • Pictures & prints (for display in office area)
  • Plant hire (used within business)
  • Postage
  • Prizes and promotions
  • Professional development courses
  • Professional library
  • Perfume as a gift for staff less than $300, tenants, clients etc.

Q

  • Quantity Surveyor fees

R

  • Rental property expenses, including:
    • Advertising
    • Agent’s commission
    • Building Write off
    • Body corporate fees
    • Bookkeeping
    • Borrowing expenses
    • Building and/or pest inspection
    • Cleaning
    • Depreciation
    • Gardening
    • Gifts for tenants and managers
    • Heating, lighting, etc.
    • Interest
    • Insurance
    • Land tax
    • Legal expenses re: Leases, tenants or property
    • Letting fees
    • Rates Council/Water
    • Repairs and maintenance
    • Rubbish Removal
    • Stationery
    • Travel (airfares, accommodation, car hire, transport costs, meals, parking, tolls, petrol, photos, film, etc.)
    • Telephone
  • Radios (used to provide music or training at work)
  • Registration
  • Relocation expenses
  • Rents paid, such as:
    • Business premises
    • Parking facilities
    • Safe deposit boxes
    • Warehouse and storage
  • Repairs & Maintenance
  • Research and development
  • Royalties

S

  • School building levies
  • Self Education expenses (including course fees, travel, stationary, equipment etc. except HECS) provided that the education directly benefits you in your current occupation
  • Security (including alarm monitoring)
  • Seminars and associated costs
  • Share trading losses (if bona fide share trader)
  • Software
  • Spare parts
  • Sporting sponsorships
  • State taxes and fees
  • Stationery
  • Stock
  • Storage
  • Street directory
  • Subcontractors
  • Subscriptions to all trade, business and professional products
  • Suit hire for presentations etc.
  • Sun protection
  • Superannuation contributions
  • Stereo, TV, DVD to listen to educational information (diary for Business % or if you have 2 one is for exclusive business use)
  • Stress management course can be claimed by business for employees

T

  • Taxi fares
  • Tea and coffee making equipment
  • Telephone
  • Tender costs
  • Theft losses
  • Tools and equipment
  • Toys used in reception or waiting area of business, or as a gift for clients, tenants or staff (less than $300), infrequently, etc.
  • Trade and technical journals
  • Travel expenses (including meals, airfare, telephone, etc.)
  • Travel luggage
  • Travel between jobs, place of education, tax agent, etc.
  • Travel allowances
  • TV as a gift to staff under $300 infrequently, tenants, agents, customers, business associates etc.

U V W X Y Z

  • Uniforms
  • Uniform wash, clean, dry-clean and maintenance
  • Union fees
  • Valuation fees
  • Vending machines on business premises
  • Video cassettes
  • Vouchers as a gift to staff under $300 infrequently, for tenants, agents, customers, business associates, etc. i.e. Myer, Target, Kmart, Harvey Norman etc.
  • Wages, including:
    • Long Service Leave
    • Annual Leave & Loading
    • Bonuses
    • Commissions
  • Waste disposal
  • Water filtration units
  • Water storage
  • Work Cover premiums