The ATO has published a handy guide to ensure that you get it right when claiming business expenses.
- You cannot claim for private use – the expense must have been for your business. Do not include claims for private expenses such as private rent, fines, travel, food or renovations of a private residence.
- If the expense is both business and private use, you can only claim for the portion that is used for business.
- You must have evidence to prove the business expenses – ensure you have kept the right records.
- Check business and private expense codes are correct on your accounting software.
- Ensure that if you are claiming business expenses that it is at the GST exclusive rate if you are registered for GST, not the GST inclusive rate.
- Be aware that if you operate your small business as a company or trust, paying private expenses from these accounts may have other tax implications such as fringe benefits, tax and shareholder loans.
Call in at your local TaxAssist Accountants for help.
Date published 03 Jun 2019 | Last updated 31 Jan 2025
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
