Money: What business expenses can you claim?

This tax time, to work out what business expenses you can claim, you need to apply these three golden rules:

1. The money must have been spent for your business – not a private expense

2. If it’s a mix of business and private use, only claim the portion related to your business.

3. You must have a record to prove your expense.

A mix of business and private use.

Some common expenses that can be both business and private include:

motor vehicle expenses; for example if you use your car for your family and business travel expenses;

for example, if you combine a holiday with a business trip

home-based business expenses such as rent or mortgage interest, if your home is also your place of business.

Keep good records to show how you’ve worked out the business use of an expense.

For example, you can: use a vehicle logbook, keep a travel diary, keep a floor plan to show the percentage of your home’s floor space that you use as your place of business.

Remember, registered tax agents can help you with your tax return.

Source: Australian Taxation Office

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