How to minimise your business tax burden
Every business is different, so an exhaustive list of what is tax deductible will vary. The following is a sample of the kinds of expenses that could be deductible – it might get you thinking about what you are claiming concerning your business.
-
Salary and wages and bonuses paid to employees.
-
FBT on fringe benefits paid is deductible.
-
Staff recruitment costs (advertising, agency fees).
-
The cost of drawing up employment agreements.
-
Superannuation contributions.
-
Workers compensation insurance.
-
Rent or lease costs of business premises (the rent itself, lease document preparation costs, etc).
-
Bank fees and charges on business bank accounts.
-
Bad debts (must actually be written off as bad).
-
Borrowing expenses, for example interest on funds borrowed that are used in the carrying on of the business, legal expenses, registration fees. Note that this year-by-year test allows for changes in the use of the borrowed funds.
-
The cost of trading stock, including freight, taxes and insurance.
-
Licence fees.
-
Motor vehicle expenses.
-
Repairs.
-
Lease of equipment or plant.
-
Depreciation of assets of the business. This can include the businesses’ buildings themselves.
-
Advertising.
-
Power costs.
-
The cost of promotional giveaways.
-
Gifts and donations to the value of $2 or more – this can include gifts of things like property (including trading stock) bought by the business during the 12 months before the gift was made.
-
Transport and freight expenses.
-
Fees of a registered tax agent.
-
Cost of attending conferences related to the activities of the business.
-
Payroll tax and land tax on business premises.
Comments