Running a business is hard enough without leaving money on the table.
Yet every year, many small business owners miss out on legitimate tax deductions simply because they don’t know what to claim.
The ATO offers a wide range of deductible expenses, but not all are obvious. If you’re not across the finer details — or if your recordkeeping isn’t up to scratch — it’s easy to miss out on claims that could reduce your tax bill.
Here are five commonly overlooked deductions that could make a difference to your bottom line:
1. Prepaid Expenses
If you’ve paid upfront for next year’s business costs like insurance, rent, or services, you may be able to claim them now. Prepaying certain expenses before 30 June could bring your deductions forward — but the rules vary, so it’s worth getting advice.
2. Tools and Software
Laptops, business apps, design tools, accounting platforms — if it helps you run your business, it might be deductible. Even lower-cost items like digital subscriptions or cloud storage can add up when claimed correctly.
3. Vehicle Use for Business
If you use your car to visit clients, deliver goods, or travel for work-related purposes, you might be entitled to claim a portion of your running costs. Just make sure you keep a logbook or clear records of business use.
4. Home Office Costs
Running a business from home? You may be able to claim a percentage of your electricity, internet, rent, and office equipment. The method you use to calculate your claim matters — and getting it wrong can lead to issues down the track.
5. Business Subscriptions and Memberships
Professional memberships, industry publications, and digital platforms like Canva or Xero can be deductible if they relate directly to your business. These are often missed in end-of-year prep, especially if you’ve signed up and forgotten to track them.
Don’t Leave It to Guesswork
Knowing what to claim and how to claim it properly can be the difference between a stressful tax season and a smooth one. At BJT Business Advisors, we work closely with small business owners to help them claim smarter, stay compliant, and hold onto more of what they earn.
If you’re unsure whether you’re making the most of your tax deductions, we’re here to help.
