What Tax Deductions Can I Claim? Don't Miss Out on Hidden Tax Deductions
There are lots of things to keep on top of when running a small business, and when tax time rolls around, it can feel even more overwhelming. We share some commonly overlooked tax deductions for work related expenses, so you can keep more of your hard-earned money.
What Makes an Expense Deductible?
A quick rule of thumb: If an expense is directly related to running your business and generating assessable income, it’s likely deductible. This means you don't pay tax on the expenses incurred.
The Australian Taxation Office (ATO) requires you to keep records, so if you don’t have receipts or invoices, those expenses might not count. Keeping solid records throughout the year is essential for maximising deductions and avoiding last-minute stress when it's time to lodge your tax return.
If you're looking for a way to keep invoices and receipts filed safely away (digitally, not in a shoebox), take a look at Hubdoc. Hubdoc automatically tracks your expenses and keeps digital copies of receipts. Your future self will thank you!
Top Overlooked Tax Deductions for Small Businesses
Many business owners know they can claim expenses like office rent and employee wages, but what about these often-missed deductions? The below items may be used to help reduce your taxable income.
1. Business-Related Subscriptions & Apps
- Project management tools (Asana, Trello)
- Graphic design software (Canva, Adobe Creative Cloud)
- Social media scheduling tools (Hootsuite, Buffer)
2. Home Office Expenses
If you spend time working from home (even purely administrative tasks), you may be able to claim deductions on:
- A portion of your internet and electricity bills
- Home office equipment, furniture and supplies
- Phone costs related to business calls
3. Business Travel Expenses & Accommodation
Heading to a conference or meeting? Your expenses could be deductible, including:
- Flights and accommodation
- Taxis and ride-share costs
- Meals while traveling for work (beware of entertainment expenses, though!)
4. Training & Education
Up-skilling is an investment in your business. You can claim tax deductions for:
- Business-related courses and workshops
- Books and online training
- Conference fees
5. Website & Digital Marketing Costs
If your website and marketing help generate business, they’re likely deductible:
- Website hosting and domain fees
- SEO services and digital ads (Google, Facebook, LinkedIn)
- Professional photography or videography for your business
6. Client & Employee Appreciation
While most entertainment expenses aren’t deductible, certain client and employee-related costs are:
- Non-alcoholic client gifts
- Employee bonuses and incentives
7. Business Loan & Credit Card Interest
If you’ve taken out a loan or used a business credit card, the interest on these accounts is typically deductible. This includes mortgage interest on a business premises.
8. Landscaping & Office Maintenance
If you have a physical business location, maintaining the space can be deductible, including:
- Landscaping and garden upkeep for office premises — even office plants
- Office cleaning services
- Pest control expenses
- Repairs and maintenance for office fixtures and equipment
9. Clothing & Laundry Expenses
If your business requires specific work attire, you may be able to claim a tax deduction for:
- Uniforms – Only if they are distinctive and have a logo (plain business clothes don’t count)
- Protective clothing – Such as safety boots, gloves, or high-visibility vests
- Laundry costs – If you wear a deductible uniform, you can also claim the costs of washing, drying, and ironing it
10. Car Expenses
If you use your vehicle for business purposes, you may be able to claim deductions for:
- Fuel and oil
- Repairs and servicing
- Registration and insurance
- Depreciation and lease payments
The ATO allows two methods for claiming car expenses: the logbook method (tracking actual business use) or the cents per kilometre method (a set rate per kilometre traveled for business purposes). Learn more about how to claim car expenses.
Keeping track of these expenses ensures you don’t miss out on deductions that can add up over time.
What You Can’t Claim a Deduction On
While there are many deductions available, here are a few things that don’t qualify as tax deductible expenses:
- Personal expenses (like your daily coffee run — unless it’s for office use!)
- Entertainment costs (taking clients out for drinks is not deductible)
- Fines and penalties (speeding tickets while driving for work won’t cut it)
- Capital purchases (big-ticket items like cars or property improvements must be depreciated over time, unless they're eligible for the instant asset write off where you can claim an immediate deduction in the current financial year)
Beware of Due Dates
If you’re making superannuation contributions for employees, these payments must be made on time to be eligible for a tax deduction. Late payments won’t qualify, so ensure you meet the deadlines to maximise your deductions.
From July 1, 2025, the ATO will no longer allow tax deductions for general interest charges (GIC) and shortfall interest charges (SIC) on unpaid tax liabilities — like superannuation. Previously, businesses could claim these interest expenses, but under the new law, this will no longer be possible. This is another reason to make sure super is paid on time.
How to Maximise Your Deductions
Want to make sure you’re claiming everything you’re entitled to? Here are some quick steps:
- Keep accurate records – Store receipts digitally and use accounting software.
- Separate personal and business expenses – A dedicated business account makes this easier.
- Consult a tax professional – A good accountant and registered tax agent will ensure you’re not leaving money on the table.
We're Here to Help
Taking advantage of tax deductions isn’t just about reducing your tax bill, it’s about making your business more financially efficient. By knowing what you can claim (and keeping good records), you can reinvest more into your business and keep more of your profits.
Reach out if you need help optimising your business finances, we'd love to help.
